BAKU, Azerbaijan, May 18
By Tamilla Mammadova – Trend:
In 2020, the price of gold in Georgia may increase by 11 percent, Trend reports citing the report entitled “The Impact of COVID-19 on the Georgian Economy” of TBC Capital at Georgian TBC Bank.
As reported, the price of copper will decrease by 14 percent, and of iron ore - by 8 percent.
“Restrictions on economic activity did not affect the mining sector. The share of exports of copper, gold and ferroalloys in total exports amounted to 28 percent," the report said.
According to TBC Capital, the expected decline in iron ore prices (-8 percent) poses a risk to the export price of ferroalloys. A decrease in construction, infrastructure costs and production is expected to reduce the demand.
"It is expected that the price of gold, as a safe asset, will increase (+11 percent) during 2020,” the report said.
Meanwhile, foreign direct investment in Georgia's mining sector increased by 9.5 percent in 2019 year-on-year reaching $68.7 million. This is while this figure stood at $62.2 million in 2018. The Netherlands was the most interested country in investing in Georgia's mining sector last year.
Today, Georgia's mineral industry produces manganese, copper and various types of quarried stone. Although the Georgian economy has experienced significant economic growth in recent years, growth in the mining and metallurgical sector has lagged behind that of the overall economy.
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