Giorgi Khishtovani, Research Director at PMC ResearchCenter declares that it will be more difficult to achieve the goal for 2021 in the current economic downturn.
"Our foreign debt has increased a lot and approached 60% of GDP. However, we were not able to spend the funds allocated under the support package. In fact, the balance is left after the aid packages were distributed to vulnerable groups," Khishtovani said.
Kishtovani notes, that the remained fund is good in the sense that more money is mobilized for 2021, which might be considered as a positive development.
“Finally, we could not really call it a positive development because we could not spend it”, Khishtovani declares.
According to Khishtovani, he understands the government's approach, but if the right decision is not made, 2021 will be difficult by all forecasts.
"It is a fact that the government has chosen a tougher approach, putting the health of the citizen first and the economy second. This is obvious to me. I cannot say that this is a wrong approach, but the fact is that a very difficult year is ahead in 2021. We are only responding harshly to the pandemic crisis, which raises questions. 2021 will be difficult by all forecasts. The growth rate of the economy also indicates that the resource of economic activity is exhausted”, - Kishtovani declares.
According to the Research Director at PMC ResearchCenter, the construction sector was stimulated in advance by the subsidy program in order not to stop in 2020, which will affect the activity in this sector in 2021. He notes that tourism will not recover due to the pandemic in 2021 and accordingly, it will not increase demand in export markets.
“The right decision must be made at the right time. How much we have the luxury due to the economic situation to continue this strict policy for life, because otherwise we are really at high risk in 2021. If 5% economic growth is not fulfilled, we will find ourselves in a depressive economy,” said Giorgi Khishtovani.
