Weekly Update from the Chief Economist

29 Nov, 2021
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  • The GEL rates somewhat normalized after increasing mainly due to post-election related depreciation expectations
  • The GEL yield curve also indicates to rate cut expectations
  • New Covid-19 variant led to correction in oil, hotel and airline prices
  • Per our judgement, it is probably still too early to materially revise our growth and the GEL rates outlook for 2022
  • The GEL REER strengthened further, enabling to argue that now there could be even more room for the correction
  • However, it also should be noted that from the long-term trend perspective, the GEL remains slightly undervalued
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