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Economic Indicators Comparison: Nigeria vs. Georgia
| Indicator | Nigeria | Georgia |
|---|---|---|
| Interest Rates (Lending) | 26.25% May 2024 | 8% (Jul 2024) |
| Exchange Rates (Local Currency per USD) | ₦ (Nigerian Naira) 1,490 | GEL (Georgian Lari) 2.90-3.00 |
| Inflation Rate | 33.95% (May 2024) | 1.8% (Jul 2024) |
| Unemployment Rate | 5% | 14% (April 2024) Trading Economics, |
| GDP Growth Rate | 2.85% | 5.0% (projected 2024) |
| Savings Rate | 6.28% | Around 18% (estimated household) |
Discussion:
- Interest Rates: Nigeria has significantly higher interest rates to address higher inflation.
- Exchange Rates: The Nigerian Naira is weaker compared to the Georgian Lari against the USD.
- Inflation Rate: Nigeria experiences considerably higher inflation compared to Georgia.
- Unemployment Rate: Unemployment is a serious challenge in both countries, but Nigeria likely has a lower rate.
- GDP Growth Rate: Georgia’s economy is projected to grow at a faster pace than Nigeria’s in 2024.
- Savings Rate: Both countries have populations with a reported propensity to save.
History of Georgian Money
Georgia boasts a rich and ancient monetary history. The world’s first coins emerged here in the Kingdom of Colchis around the 6th century BC. Known as Colchian Tetri, these silver coins marked the dawn of Georgia’s coin-making legacy.
For centuries, Georgia’s strategic location made it a crossroads for diverse cultures and currencies. Greek, Roman, Persian, Arab, and later, Ottoman and Russian coins circulated within its borders. Each coin told a story – a chapter in Georgia’s complex political and economic history.
From the early days of silver to the complexities of modern finance, Georgia’s monetary journey is a captivating saga.
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The Evolution of the Georgian Lari
The Georgian Lari (GEL) has been the national currency of Georgia since 1995, replacing the Georgian coupon. Its history reflects the country’s economic development and political transition.
Early Years and Currency Union: Before independence, Georgia used the Soviet ruble. After gaining independence, the country introduced the Georgian coupon as a temporary currency. In 1995, the Georgian Lari replaced the coupon.
Economic Challenges and Hyperinflation: During the early years of independence, Georgia experienced severe economic challenges, including hyperinflation and political instability. These factors contributed to a significant devaluation of the Lari.
Currency Reforms and Stabilization: To address these challenges, the Georgian government implemented a series of economic reforms, including monetary tightening and fiscal discipline. These measures helped to stabilize the Lari and reduce inflation. In 1998, Georgia introduced a new Lari, which was devalued by 50% against the US dollar.
Recent Developments: In recent years, Georgia has experienced rapid economic growth, driven by increased foreign investment, trade liberalization, and tourism. The Lari has appreciated against the US dollar, reflecting the country’s strong economic performance. However, Georgia remains vulnerable to external shocks, such as fluctuations in commodity prices and political instability.