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Georgia’s economic output is expected to fall by $1.0 billion to $1.2 trillion due to Russia’s military intervention, according to the head of the finance and budget committee of Parliament.
According to Russia’s TASS news agency, Irakli Kovzanadze stated that Russia and Ukraine were “our major trading partners. Russia is second and Ukraine is fifth- or sixth.”
He stated that the Ukrainian crisis would not only affect exports, but also tourism income and remittances.
Kovzanadze stated that he believes Georgia’s economy would lose $1-1.2 billion.
He said that although growth is unlikely to be below 6%, there would not be any problems in implementing the state budget.
According to preliminary data, Georgia’s gross domestic product grew 10.6% in 2021 after it recovered from the coronavirus pandemic effects that caused a 6.2% drop for 2020.
According to the International Monetary Fund, Georgia’s GDP was estimated at $18 billion by 2021 in U.S. dollars.
Russia sent thousands of troops to Ukraine as part of a special operation it called “degrading its southern neighbor’s military capabilities” and to root out dangerous nationalists.
In an attempt to force Russia to withdraw its forces and to make it more accountable, the West has placed severe economic and financial sanctions against Russia. However, the conflict threatens Ukraine’s economy.
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