Slowdown of economic growth globally affects Georgia's exports

Finance Materials 28 February 2020 10:49 (UTC +04:00)

Baku, Azerbaijan, Feb.28

By Tamilla Mammadova – Trend:

The slowdown of economic growth globally is affecting Georgia's key trading partners, especially in Europe, which in turn, can harm Georgia's exports, the Organization for Economic Co-operation and Development (OECD) told Trend.

Furthermore, as OECD said, the decision by the Russian government to halt flights between Russia and Georgia negatively affects Georgia's tourism sector.

"It is still too early to assess the full impact of the suspension, but given that about a million Russians visited Georgia last year, the loss in tourism revenues due to the flight ban is bound to be significant," said the OECD.

According to the organization, more broadly, this reflects the fact that both international and domestic political risks could, if realized, undermine growth.

As the OECD noted, the other main downside risks concern "reform fatigue" at a time when Georgia still has much to do to strengthen its attractions as an investment destination.

The Organization for Economic Co-operation and Development is an intergovernmental economic organization with 36 member countries, founded in 1961 to stimulate economic progress and world trade.