Former Deputy Economy Minister Nika Alavidze warns that cancelling Georgia’s visa-free regime with the EU would have far-reaching economic consequences, not just public inconvenience.
Speaking to BMG, Alavidze emphasized that remittances, a key driver of the Georgian economy, could fall by USD 400–500 million if visa liberalization ends. “Nearly 50% of remittances, around $1 billion, come from EU countries. A drop in these inflows would hit families, raise bad loan rates, and increase pressure on the lari,” he said.
He also warned of broader macroeconomic risks. “Visa-free travel is part of a wider political and economic relationship. Its cancellation could trigger a review of Georgia’s Deep and Comprehensive Free Trade Agreement (DCFTA), hurt our EU candidacy, and damage business ties with Europe,” Alavidze noted.
According to him, the cancellation would also negatively impact Georgia’s sovereign credit ratings. “Agencies like Moody’s and Fitch have already warned that distancing from the EU would lead to a downgrade. That would increase the cost of borrowing for Georgia by 0.5% to 2%, a major burden, especially with €750 million in debt due this year and €1.3 billion early next year,” he added.
Alavidze concluded that visa liberalization is more than a travel benefit; it’s a symbol of Georgia’s alignment with Europe. Its loss would not only damage the country’s reputation but also destabilize key areas of the economy.
