ECONOMY MINISTER: AGAINST THE BACKGROUND OF CORONAVIRUS PANDEMIC AND DEVALUATION OF LARI, NEGATIVE ECONOMIC GROWTH IS NOT EXCLUDED
Instead of originally forecasted growth of Georgia’s economy by 4-5% in 2020, now against the background of coronavirus pandemic and devaluation of lari, it is not excluded that the growth rate will be within -2-0%.
According to French embassy, that was declared by Georgia’s Minister of Economy and Sustainable Development Natia Turnava to French ambassador in Georgia Diego Colas, who aimed “to take stock” of economic situation in Georgia.
ISET ESTIMATES IMPACT OF CORONAVIRUS PANDEMIC ON GEORGIA’S GDP FROM -0.8 TO -5.37 PP, DEPENDING ON DURATION
International School of Economics at Tbilisi State University (ISET) estimated net effect of crisis, caused by COVID-19 pandemic, on Georgia’s GDP. Overall, 3 scenarios are considered, depending on crisis duration.
ISET: EXPECTATIONS OF CURRENCY DEPRECIATION WILL AFFECT NEGATIVELY FOREIGN DIRECT INVESTMENTS
International School of Economics at Tbilisi State University (ISET) forecasts reduction of foreign direct investments (FDI) in Georgia at the background of COVID-19 pandemic. As researchers point, besides the fact that foreign investors prefer to invest in safe assets, expectations of currency depreciation will additionally affect FDI negatively.
ISET: MEASURES, TAKEN BY THE GOVERNMENT AND PRIVATE BANKS, WILL NOT BE ABLE TO REACH DIRECTLY QUITE BIG GROUP OF THE POPULATION
Measures against impact of COVID-19 pandemic on Georgia’s economy, adopted by the government as well as private commercial banks, “will not be able to directly reach a sizeable group of the population affected by the shock”, International School of Economics at Tbilisi State University (ISET) declared.
The matter concerns those unemployed due to COVID-19 threat; those working in the informal sector (e.g., temporary workers, taxi drivers and other self-employed service sector workers); people with low income; or households that much depend on remittances transfers.
IN Q4 OF 2019, CONSTRUCTION COST INDEX INCREASED BY 2.5% Y-O-Y
Sakstat declared that construction cost index in the 4th quarter of 2019 has increased year-on-year by 2.5%.
Growth of the index is caused mainly by growth by 4.2% of nominal salaries in the construction sphere, Georgian statistics service specified.
REHABILITATION OF AGMASHENEBELI STREET IN LANCHKHUTI TO BE COMPLETED IN THE END OF SUMMER
Georgian Roads Department reported about rehabilitation, being underway on 1.8-km Agmashenebeli Street in Lanchkhuti (Guria region). Works are planned to be completed at the end of summer.