Economic boom in Georgia the result of the war in Ukraine - CNBC
Economic boom in Georgia
While many economies are suffering from the impact of the Russian invasion of Ukraine, several countries are benefiting from the flow of Russian migrants and Georgia is among them, American cable news channel CNBC writes.
This year at least 112,000 Russian migrants arrived in Georgia, which has had a serious impact on the Georgian economy, already rebounding from pandemic shutdowns. The Georgian lari appreciated by 15 % against the dollar and is now at a three-year high.
The International Monetary Fund has raised its forecast for the Georgian economy and now expects 10% growth this year. The institution cited migration and remittances as the primary drivers.
According to CNBC, there has been a sharp influx of capital into Georgia this year, mostly at the expense of Russia. In October alone, 59.6% of foreign capital in Georgia was from Russia.
Migrants are attracted not only by the location of Georgia, but also by its liberal immigration policy. According to the forecasts of the National Bank, next year the pace of economic growth will slow down with an expected 5% growth.
The Georgian government denies that migrants are having an impact on the country’s economic growth. The reason for the double-digit growth is “the prudence of the government and pragmatic national policy,” Georgian Prime Minister Irakli Garibashvili stated.
According to the latter, Georgia is experiencing growth in all areas, and “in general we have double-digit economic growth, which is unprecedented.”
It is a mistake to consider double-digit economic growth in Georgia the result of migrants, Finance Minister Lasha Khutsishvili also believes.
- Russians spent 526% more in Georgia in October than a year ago
- Most Russian companies registered in Georgia after February
According to the Institute for the Development of Freedom of Information, in the first seven months of 2022 a total of 1,598 people received Georgian citizenship, of whom 723 were Russian citizens. After the Russian invasion of Ukraine in 2022, 551 Russian citizens and eight Ukrainian citizens received Georgian citizenship as an exception.
According to the same IDFI data, from the day of Russia’s invasion of Ukraine to August 31, 45,349 Russian citizens opened accounts in Georgian commercial banks. This suggests that this is a migration of Russian citizens, and not tourism, IDFI experts say.
Economic boom in Georgia