Ivane Machavariani: The loss of the Georgian economy will be about 800 million dollars

According to the Minister of Finance of Georgia, Ivane Machavariani, the pandemic has significantly changed the positive macroeconomic indicators of the country. Machavariani said that the tourism sector was particularly affected, which was one of the important driving forces of the country's economy.

"The tourism sector, which accounted for 10% of the country's economy, was hit hard. In 2019, our economy received $ 3.3 billion from tourism. This figure will be reduced to 90% this year. Last year, exports were $ 3.8 billion, but this year we will have a decrease of about 10%. In total, from these two sectors alone, the Georgian economy has lost more than $ 3 billion.

The deterioration of the trade balance has also affected the current account deficit, which is projected at 9.7% this year and 8.5% in 2021. The pandemic and the resulting uncertainty have led to a decline in investment around the world, which has also been reflected in the rate of foreign direct investment in Georgia. This year, it is expected to shrink by 30%, which is a loss of about $ 400 million. According to the latest forecast of the International Monetary Fund, due to the reduction of trade balance and foreign direct investment, the Georgian economy will lose $ 1.3 billion in 2020, and next year - about $ 800 million," - said Ivane Machavariani.