Georgia's Economic Outlook 2020

10% 8% 6% 4% 2% 0% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Feb-16 Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 ■Gross international reserves, US$ bn MONETARY POLICY RATE NBG cut policy rate by 50bps May-16 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 to 8.5% on 29 April 2020 INTERNATIONAL RESERVES SUFFICIENT TO FINANCE MORE THAN 3 MONTHS OF IMPORTS INTERNATIONAL RESERVES 4.0 3.0 2.0 1.0 0.0 CENTRAL BANK'S INTERVENTIONS NBG sold US$ 120mn in Mar-Apr 2020 Source: NBG 300 220 US$ sale 200 120 100 100 40 40 27200 60 60 40 wl-15 O -100 -200 08- -120 US$ purchase -40 -63 -140 61 Source: NBG 100 40 32.8 20 20 -85 -20-20 -20-40 -30 -25-65 -70 -30 -101 May-16 Sep-16 Dec-16 Apr-17 Aug-17 Nov-17 Mar-18 Jun-18 Oct-18 Jan-19 May-19 Sep-19 Dec-19 Apr-20 Source: NBG 10% do do do do do do 8% 8.5% 4% Apr-19 Aug-19 Dec-19 Mar-20 80% 75% 70% 65% 60% 55% 50% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Loan dollarization Jun-15 Oct-15 Jan-16 May-16 Aug-16 Jan-14 Apr-14 Jul-14 LOAN AND DEPOSIT DOLLARIZATION Dec-16 Apr-17 Jul-17 Nov-14 Feb-15 Jun-15 Sep-15 Dec-15 Apr-16 Jul-16 Nov-16 Feb-17 Jun-17 Sep-17 Dec-17 Apr-18 Jul-18 Nov-18 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 Deposit dollarization NBG net interventions, US$ mn Feb-19 May-19 Source: NBG 80% 75% 70% 66.3% 65% 58.5% 60% 55% 50% Sep-19 Dec-19 Apr-20

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