Tuesday, December 6, 2022

Georgia says it will lose over $1 billion because of Ukraine By Reuters


(Reuters) – Georgia is likely to lose $1.0 billion to $1.2 billion in economic output owing to Russia’s military intervention in Ukraine and fall short of its 6% 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 $1-1.2 billion,” Kovzanadze said.

Although growth was likely to fall short of 6%, he said there would be no problems implementing the state budget.

Georgia’s gross domestic product expanded 10.6% in 2021 as it recovered from the effects of the coronavirus pandemic after a 6.2% drop in 2020, according to preliminary data.

The International Monetary Fund estimated Georgia’s GDP at around $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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories