Georgia says it will lose over Dollar 1 billion due to Russia-Ukraine war
Georgia's Head of Finance and Budget committee of the Parliament, Irakli Kovzanadze said that the Ukrainian crisis would reduce not only exports but also tourism income and remittances from abroad.
Relatives and friends mourn the body of a Georgian volunteer, who was killed during fighting in Ukraine, inside a church in Tbilisi, Georgia, Friday, March 25, 2022. (AP Photo/Shakh Aivazov)
Georgia is likely to lose US Dollar 1.0 billion to 1.2 billion in economic output owing to Russia's military intervention in Ukraine and fall short of its 6 per cent growth target, the head of parliament's finance and budget committee said on Friday.
"Russia and Ukraine are our main trading partners," Irakli Kovzanadze told the TV channel TV Pirveli, according to Russia's TASS news agency. "Russia is second, and Ukraine is fifth or sixth place."
He said the Ukrainian crisis would reduce not only exports but also tourism income and remittances from abroad.
"I think Georgia's economy will lose Dollar 1-1.2 billion," Kovzanadze said.
Although growth was likely to fall short of 6 per cent, he said there would be no problems implementing the state budget.
Georgia's gross domestic product expanded 10.6 per cent in 2021 as it recovered from the effects of the coronavirus pandemic after a 6.2 per cent drop in 2020, according to preliminary data.
The International Monetary Fund estimated Georgia's GDP at around Dollar 18 billion in 2021, in U.S. dollar terms.
Russia sent tens of thousands of troops into Ukraine in what it called a special operation to degrade its southern neighbour's military capabilities and root out people it called dangerous nationalists.
The West has imposed sweeping economic and financial sanctions on Russia in an effort to force it to withdraw its forces, but the conflict is also set to ravage Ukraine's economy.
Irakli Kovzanadze