Tbilisi (GBC) – “Amidst energy price volatility and subsequent inflationary pressures in Georgia, we expect the National Bank to maintain a moderately tight monetary policy stance throughout the year”, - says Archil Gachechiladze, CEO of Lion Finance Group PLC (LFG; formerly Bank of Georgia Group PLC/BOGG).
According to him, ongoing strong loan demand in key segments positions the Group to capitalise on this favorable rate environment, which will support the net interest income.
“At the same time, we see lower currency volatility translating into reduced foreign exchange gains. Beyond our core activities, we continue to experiment and deploy different AI applications, including personalised product recommendations and process automations, to improve customer experience and operational efficiency. While it is too early to exactly pinpoint the financial impact of these initiatives, we are focused on developing technologies that create tangible value for both our customers and investors”, - Gachechiladze said.
According to Gachechiladze, macroeconomic conditions in Georgia and Armenia remained strong in early 2026, underpinned by solid domestic demand and resilient external inflows. Reflecting the sustained resilience of both economies and their strong early-year performance, we have revised our 2026 real GDP growth forecasts upward, to 7% for Georgia and 6% for Armenia.
Although conflict escalation in the Middle East may weigh on the near-term outlook primarily through energy market volatility and higher inflation, both economies remain well positioned, supported by ample reserves, prudent fiscal policies, and credible monetary management. A prolonged conflict could also create upside through the Middle Corridor and shifting capital and tourism flows.
