BAKU, Azerbaijan, March 17
By Tamilla Mammadova – Trend:
While the extent of the coronavirus outbreak is still unknown, lower oil and commodity prices together with lower demand are expected to negatively impact Georgia’s economy, the International Monetary Fund (IMF) Mission Chief for Georgia Mercedes Vera-Martin told Trend.
As Mercedes Vera-Martin noted, disruptions in global value chains, drop in tourism and transportation are expected to impact negatively on Georgia.
"Oil exporters account among Georgia’s relevant trading partners. Given heightened uncertainty about the duration of the shock, we are closely monitoring developments to get a better sense of the impact, but it would be premature to provide details at this point," said the IMF Mission Chief for Georgia.
According to her, given the halt in traveling and tourism and the increasing relevance for the Georgian economy of these sectors over the past years, the hospitality sector is expected to be impacted significantly.
"Lower demand for Georgian products in China and main trading partners, some will likely see the highest drop in growth in the region due to lower oil prices, will also be negatively affected," Mercedes Vera-Martin noted.
It would be premature to provide an estimate of when the Georgian economy would come out of the crisis, Mercedes Vera-Martin said.
"There is significant uncertainty as the coronavirus crisis expands into a retrenchment in consumer confidence and business behavior and a tightening in financial markets," she added.
As of now, Georgia has 34 confirmed cases of COVID-19. In total 1,008 people are under quarantine in Georgia and 64 others remain in hospitals under the observation of doctors.
Amid the new coronavirus outbreak, Georgia has suspended direct flights with China, Iran and Italy, which are currently the largest centers of the outbreak.
The outbreak in the Chinese city of Wuhan - which is an international transport hub - began at a fish market in late December 2019. The symptoms include cough, headache, fatigue, fever, aching and difficulty breathing. It is primarily spread through airborne contact or contact with contaminated objects.
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