Asian Development Bank praises Georgia's response to pandemic, notes unique opportunity for new era of economic growth
Rosenthal noted that Georgia has successfully avoided the worst health impacts of COVID-19, although he said “the pandemic has shown that the country remains dependent on tourism and trade.” Photo: Nino Alavidze/Agenda.ge.
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ADB Country Director for Georgia Shane Rosenthal has praised Georgia's response to the coronavirus pandemic, noting its low infection rate in the Caucasus and Central Asia.
As Georgia’s economy gradually restarts, it has a unique opportunity to initiate a new era of growth that is more diversified and inclusive,” said Rosenthal.
He noted the country’s early actions to combat the virus including health checks on incoming airline passengers and restrictions on movement.
He also praised the regulations of the National Bank of Georgia to stabilise the Georgian currency, the lari, and the postponement of repayment of loans by Georgian commercial banks. He noted that the Georgian government is trying to identify and help people who need it most, including pensioners over 70.
Although the response to the pandemic will contribute to a fiscal gap reaching about 8% of GDP, Georgia has built up fiscal and foreign exchange buffers to help it weather economic shocks. Its economic policymaking institutions have also established a reputation for competence and strong governance,” said Rosenthal.
ADB Country Director for Georgia Shane Rosenthal noted the international financial support to Georgia including the ADB’s $100 million financial countercyclical loan to contain the pandemic and said that confidence in Georgia helped international partners to support the country.
The impact on public finances will be significant, and Georgia’s public debt-to-GDP ratio is expected to rise – from 44.5% in 2019 to 62.5% in 2020,” said Rosenthal.
ADB Country Director for Georgia offered five ways to help the Georgian economy:
- Support the private sector by maintaining a resilient financial system
- Improve access to finance for micro, small and medium sized enterprises
- Boosting access to finance for the agricultural sector
- Improve employment skills that are relevant to the modern economy
- Develop more livable cities
Rosenthal noted that Georgia has successfully avoided the worst health impacts of COVID-19, although he said “the pandemic has shown that the country remains dependent on tourism and trade.”
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
The Georgian government has presented a plan to gradually open the economy step-by-step over the next three months. Georgian Prime Minister Giorgi Gakharia said that restrictions on economic activity will begin being lifted starting April 27 and if the coronavirus situation does not worsen in the country in three months Georgian the economy will be fully reopened.
The economy of Georgia will recover from the impact of COVID-19 in 2021 with 4.5 per cent growth after experiencing a substantial slowdown in 2020 due to the pandemic and lower oil prices, reads the Asian Development outlook, a financial publication of the Asian Development Bank (ADB).
In order to reduce the negative effects caused by the coronavirus pandemic and strengthen the Georgian economy, the National Bank of Georgia has developed a temporary supervisory plan, which is in full compliance with the recommendations of the International Monetary Fund, European Central Bank and other leading financial authorities, announces the NBG.
Tbilisi has been recognised as the top business friendly destination among 75 European cities in the Economic Potential category, reports Emerging Europe. Emerging Europe invited 70 global experts and foreign direct investment advisors to weigh up the various merits of the 75 cities in the emerging Europe region, which are either national capitals or have a population of more than 200,000 inhabitants.
As of June 21, 137 individuals remain infected with the coronavirus in Georgia since the country confirmed its first COVID-19 cases in late February. With eleven new cases of the virus confirmed over the weekend, the total number of cases has increased to 906. Meanwhile, with 14 recoveries today and yesterday the number of recovered individuals stands at 755.
Georgia has reported just two new cases of the coronavirus earlier today, bringing the total number of cases to 908. 761 of the 908 patients have recovered, while 14 others have died. As of today 133 remain infected with COVID-19.Georgia continues to maintain a low infection rate. Many of the cases reported over the past several days were imported. Several of the new patients were truck drivers and the medical personnel.
Georgia has reported three new cases of the coronavirus earlier today, bringing the total number of cases to 911.768 of the 911 patients have recovered, while 14 others have died. As of today 136 people remain infected with COVID-19 in Georgia. Two of the three new cases are imported, while one does not know how he contracted the virus.