BAKU, Azerbaijan, March 31
Tamilla Mammadova – Trend:
The COVID-19 pandemic hit Georgia hard, Trend reports citing the ‘Economic Review of Europe and Central Asia’ report of the World Bank (WB).
Mobility restrictions, a sudden halt to tourist arrivals, and weak external demand drove an estimated economic contraction of 6.2 percent in 2020. The poverty rate increased by an estimated 5.4 percentage points.
The fiscal deficit and public debt rose above statutory levels as the crisis put pressure on fiscal and external balances. The recovery will be gradual.
"The current forecast - with output recovering to pre-COVID levels in 2022— remains subject to considerable downside risks," the report said.
As reported, Georgia has a strong record of implementing economic reforms and raising the living standards of its citizens. Economic growth has been strong-averaging 5 percent per annum between 2005 and 2019—and poverty (national measure) declined rapidly to 19.5 percent in 2019, almost half its 2007 rate, spurred by sound macroeconomic policies and improving governance.
"However, the economy has not created sufficient employment, and many Georgians remain engaged in low-productivity agricultural activities. Georgia’s export basket, which is relatively small and undiversified, underscores the economy’s incomplete structural transformation," the report said.
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