The pandemic has already hit a lot of economies and Georgia is no exception. However, unlike most other economies, Georgia did a much better job with handling the Coronavirus numbers. As of late August, the number of infected is below 1500 and the death toll is as low as 19.
Is this an indicator of quick economic rebound, or the limitations that contributed to these low numbers will damage the economy beyond repair?
To answer these questions and have a better view of what the future holds for Georgian economy, I have put together 5 predictions made by experts, hoping that they can shed some light on the situation.
What Experts Have to Say
Sebastian Molineus, World Bank Regional Director for the South Caucasus
(Optimistic, citing favorable environment for international businesses)
Adam Boehler, CEO of the US International Development Finance Corporation
(Optimistic, citing stronger US-Georgia relations and the potential for more economic collaboration)
Giorgi Gakharia, Georgia’s Prime Minister
(Not Optimistic, expecting a relatively deep economic crisis if actions not taken)
Salome Zurabishvili, Georgian President
(Optimistic, citing Europe support and recovery fund, etc)
Valeri Chekheria, Executive Producer of Adjara Group
(Not Optimistic, citing low number of visitors to Georgia and its effects on tourism industry)
What Does Georgia Actually Look Like Now?
The predictions above have been made in various contexts and in the peak of the pandemic. Consequently, one cannot judge them faulty. That is why I have decided to provide an overview of what Georgia looks like now in addition to a few prospects for the months to come.
Georgia is one of the very few countries that has actually done a great job with the Pandemic. They have managed to keep the numbers very low and the spread of the virus under control. In fact, a look at the numbers show that the number of cases remain around 1500 with a fatality rate of only 19 people. What makes this number surprisingly low compared to other countries in the regions and most places in the world is timely restrictions imposed by the government.
Like most countries, Georgia has experienced falling trends in the economy in the last few months. However, the economy has multiple potentials to improve once the restrictions are lifted.
Year 2020 will also include the parliamentary elections. All the parties involved are mostly focused on the economy and better relations with the European union. As a result, the outcome of the election will favor international businesses regardless of the party that is involved.
Georgia is probably the best place in the region for international businesses. The cost of life and business is reasonably low and regulations are in favor of trending businesses especially real estate.
Despite a dip in the amount of investment by foreigners due to the pandemic, most countries have plans to invest further in the infrastructure and economy of Georgia. Some of the most notable ones are Ireland, German, the United States and China.
This is probably the main pillar of the businesses in Georgia, and the pandemic shows that real estate is the only industry that can flourish even amongst lock downs and restrictions. A lot of constructions are underway and there is a lot to dive in when it comes to real estate in Georgia. Check out this article for more.
For more information about what Georgia looked like before the pandemic, please check out the following article:
What Can I do?
If you have been thinking of Georgia as a potential place to do business or invest in, there are a few things you should know, and the best team to help you is a team that have been doing this for years.
At Sterling, we have a great team of real estate experts from around the world. Contact our experts today for a free consultation here.
If you are interested in real estate investment, then don’t miss Sanan’s next free webinar on the basics of building a life of financial independence through real estate. Save your spot now: