Finance minister: effect of Ukraine war-related migration in Georgia “negative”
Georgian finance minister Lasha Khutsishvili on Thursday said the “total effect” of migration to the country caused by the Russia-Ukraine war was “negative”. Photo: ministry of finance
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Georgian finance minister Lasha Khutsishvili on Thursday said the “total effect” of migration to the country caused by the Russia-Ukraine war was “negative”.
Khutsishvili was speaking at the parliament in his presentation of next year’s state budget, and told lawmakers an analysis of the migration trends showed negative domestic economic outcomes.
Naturally, the effect of migration waves on the economy is positive, especially if relatively high-income people are migrating. However, the analysis shows that the total effect of war-related migration, tourism and exports is negative, not to mention its [negative effect on] inflation and the investment climate", he said.
The minister also noted Russia's invasion of Ukraine was the “most important challenge" both at the global and regional levels, and for Georgia's economy.
"The indirect effects of the war, such as the deterioration of the investment climate in the region, logistical problems and the increase in the prices of energy carriers, are associated with much more significant risks than such direct effects as: exports, migration, cash transfers and so on”, he noted,
“However, there are often cases where the post-pandemic recovery is attributed to migration waves and other war-related events - especially in tourist countries, and if the country is in Russia's neighbourhood", Khutsishvili said.
The minister explained Russia's share both in tourism and exports of Georgia had decreased this year compared to the pre-pandemic 2019.
The statistics show that in the first nine months of 2022, recovery of tourism amounted to 97.5 percent, while it reached 98.1 percent if we exclude Russia and Ukraine. Exports increased by 37.4 percent, and by 47.1 percent excluding Russia and Ukraine", Khutsishvili told MPs.
He also added the “main contributor” to the high economic recovery in Georgia was the general trend of rapid recovery of tourism and exports.
The number of Russian citizens entering the territory of Georgia over the recent days is in the pre-pandemic range, Georgia’s Economy Minister Levan Davitashvili said on Monday.
Georgia received $2,854,529,093 from international tourism between January and October of this year, with the figure surpassing pre-pandemic numbers from 2019 and hitting record-high markers this year, the Georgian national tourism administration announced on Thursday.
The Georgian interior ministry on Tuesday released statistics on border crossings to Georgia made by Russian citizens over the last 10 days and detailed rules for entering the country and grounds for refusal, in response to recent claims by the domestic opposition on a “mass influx” of Russian nationals following the announcement of partial military mobilisation in the country last week for Russia’s ongoing war against Ukraine.
Ruling Georgian Dream party MP Mikheil Sarjveladze said on Tuesday there was “nothing alarming” in the number of Russian businesses registered in Georgia over the past five months, in comments of the latest data of the National Statistics Office that showed 7,459 Russian businesses registered in the country between March 1 and August 1.
Georgian economy minister Levan Davitashvili on Thursday highlighted the development of the country's digital economy and challenges facing the sector at the 12th Regional Cyber Security and IT Innovation Conference, the ministry of economy announced.