1Q20 Results Discussion

Macro developments in 1Q20 Gross domestic product Source: Geostat, IMF US$ billions Kil GEORGIA CAPITAL Real GDP grew by 1.5% in 1Q20, according to rapid estimates. IMF forecasts that real GDP will contract by 4% in 2020, rebounding to 4% in 2021. 20 15 16% 12% 10 4.8% 4.8% 5.1% 4.0% 8% 3.0% 2.9% אן Inflation at 6.4% on average in Jan-Apr. IMF forecasts the ave. inflation at 4.7% in 2020. 5 4% 0 0% -5 -4% -10 2015 2016 2017 2018 2019* -4.0% 2020F NBG decreased the monetary policy rate by 50 basis points to 8.5% end of April. -8% 2021F GDP USD Real GDP, Y-o-Y growth Exchange rate indices (1 January=100) Source: NBG 130 USD/GEL 120 110 100 90 90 3-Jan-2020 13-Jan-2020 23-Jan-2020 02-Feb-2020 12-Feb-2020 USD/UAH 22-Feb-2020 ⚫USD/TRY USD/RUB м 03-Mar-2020 13-Mar-2020 23-Mar-2020 02-Apr-2020 12-Apr-2020 22-Apr-2020 02-May-2020 110 Tourism revenues fell 26% in 1Q20 and 70% in March, as international travel is halted. 130 Official reserve assets totaled $3.4 billion by the end of March. 120 100 90 $ GEL depreciated in March and stabilised around USD/GEL 3.2 from beginning of April. The fiscal deficit and public debt are expected to rise to around 8.5% and 60% in 2020 respectively, according to IMF. Page 6

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