BAKU, Azerbaijan, April 9
By Tamilla Mammadova - Trend:
In Georgia, real GDP growth is projected to slow sharply, close to zero percent in 2020, as the impacts of COVID-19 add to an already challenging external environment, Trend reports citing World Bank (WB) report.
"This will be partly cushioned by a fiscal stimulus of around 2 percent of GDP, containing acceleration of capital spending, tax deferrals, accelerated VAT refunds and sector support for the most affected businesses, as well as higher social spending," the WB report said.
This is expected to push the fiscal deficit to around 5.2 percent of GDP in 2020, said the bank.
According to WB, the Georgian economy will be severely impacted, as transport restrictions affect the travel and tourism sectors, while containment measures dampen domestic demand.
“The World Bank remains a strong and committed partner to Georgia, and we will support the government’s health, social protection and economic recovery responses, all of which are essential to mitigating the impacts of the pandemic on the people of Georgia,” says Sebastian Molineus, World Bank Regional Director for the South Caucasus.
The World Bank Group is taking broad, fast actions to help developing countries strengthen their pandemic response, increase disease surveillance, improve public health interventions, and help the private sector continue to operate and sustain jobs.
It is deploying up to $160 billion in financial support over the next 15 months to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery.
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