Natia Turnava’s Appointment as Governor of Georgia’s Central Bank: A Strategic Play for Stability and Investor Confidence

Georgia’s recent appointment of Natia Turnava as Governor of the National Bank of Georgia (NBG) signals a clear commitment to policy continuity and financial stability. A seasoned economist with extensive experience in both government and the private sector, Turnava steps into the role at a pivotal moment, as Georgia seeks to navigate global economic and financial volatility.

Turnava’s Policy Credentials and Economic Vision

Turnava is no stranger to high-level economic policymaking. As Minister of Economy and Sustainable Development (2019–2022), she focused on:

• Attracting foreign investment in strategic economic sectors
• Enhancing Georgia’s regulatory framework to foster business growth.
• Driving post-pandemic recovery, ensuring resilience in key industries such as tourism and logistics.

Her new role as central bank governor will require a careful balancing act between inflation control and economic growth. Analysts expect Turnava to pursue prudent policies, maintaining price and financial stability. Overall, by creating a condition in which the system ensures long-run and sustainable economic development.

Georgia’s Economic Landscape: Inflation, FDI and Stability

Turnava assumes leadership at a time when Georgia’s FDI inflows have slowed, reflecting a combination of global economic uncertainty and regional geopolitical pressures. The Central Bank’s ability to restore investor confidence will be key to securing long-term economic resilience.

Turnava’s appointment is considered as a “continuity decision,” aimed at reinforcing stability rather than ushering in drastic changes. This predictability is considered crucial for maintaining institutional credibility—a quality highly valued by international investors.

Turnava’s Background: A Technocrat with International Exposure

Turnava’s academic and professional background:

• A Ph.D. in Economics from Tbilisi State University.
• A Master’s degree in Business Administration from the University of Cumbria, UK.
• Executive programme from Harvard University’s John F. Kennedy School of Government, the Joint Vienna Institute (JVI), and other institutions.

Her career spans both public and private sectors, with key leadership positions including:

• Minister of Economy and Sustainable Development, and before this role, she served as the First Deputy Minister of Economy and Sustainable Development.
• Deputy Executive Director of the State Partnership Fund.
• General Director and Chairperson of the Board of Directors of Georgian International Energy Corporation Ltd.

What to Expect from Turnava’s Tenure

It is worth noting that since 2023, Natia Turnava has served as the Acting Governor of the NBG, during which time significant steps have been taken to enhance sound monetary policy. This period has seen achievements such as low inflation, financial stability and overall economic growth.

Additionally, during her tenure as an acting governor, the Georgian lari maintained its stability—a particularly challenging task given that Georgia operates under a floating exchange rate regime.

Key challenges ahead include:

• Managing inflationary pressures while keeping interest rates aligned with economic growth objectives.
• Strengthening Georgia’s financial sector

As the global economic landscape remains uncertain, Turnava’s leadership will be a critical test of Georgia’s ability to sustain price stability while fostering growth.