The impact of the Middle East conflict will depend on its duration. We expect that the effects of the conflict in Georgia will be reflected not in supply but in prices, - said Leah Gutierrez, Director General of the Asian Development Bank’s (ADB) Central and West Asia Department, in response to a question from an InterpressNews correspondent.

As she also notes, the ongoing conflict in the Middle East will increase inflationary pressure in Georgia. At the same time, a decline in foreign direct investment and in tourist flows from the Middle East region is expected.

“Georgia is a net importer of energy resources, and the impact of the Middle East conflict will depend on its duration. We expect that the effects of the conflict in Georgia will be reflected not in supply but in prices. The main challenge is rising inflationary pressure, as higher energy prices lead to an increase in overall prices.

Given this particular environment, there could be potential declines in foreign direct investment due to external forces, and also potentially in tourism, since some of Georgia’s tourists actually come from the Middle East region.

Now, as a transit economy in the Middle Corridor, Georgia could partially offset these risks through increased transport and logistics activity,“ said Leah Gutierrez at the 59th Annual Meeting of the ADB.

According to ADB’s forecast, Georgia’s economic growth rate will slow from 7.5% in 2025 to 5.5% in 2026. At the same time, under conditions of early stabilization of the conflict in the Middle East, the Asian Development Bank predicts inflation in Georgia at 3.8% in the current year.

The Asian Development Bank’s annual meetings are being hosted by Samarkand, Uzbekistan, from May 3 to 6. The main theme of this year’s meetings is: “Crossroads of Progress: Advancing the Region’s Connected Future.”

An InterpressNews reporter is on site and will cover the main issues related to the summit.