Such investments are crucial for Georgia - especially in these tough times. Here is what the World Bank has to say about Georgia in its most recent report on Europe and Central Asia. The COVID-19 pandemic has hit Georgia hard. Mobility restrictions, a sudden halt to international tourist arrivals, and weak external demand drove an estimated economic contraction of 6.2 per cent in 2020. The poverty rate increased by an estimated 5.4 percentage points. Job and income losses were severe. The fiscal deficit and public debt rose above statutory levels as the crisis put pressure on fiscal and external balances. Georgia’s economy is projected to expand to 4 per cent in 2021 and then to firm to 5 per cent in 2022. Despite this improvement, the output is unlikely to recover to pre-COVID levels until late 2022, in part owing to a subdued outlook for international tourism over the forecast horizon. The recovery is subject to considerable downside risks, including delayed vaccinations, additional or extended COVID-19 restrictions, tightening global financial conditions, and prolonged political tensions - not an easy situation to say the least.
Evgenij Najdov, Senior Economist,WB
