The Russian invasion war of Ukraine has suffocated Europe and Georgia, the Caucasian country adjacent to Russia, has surprisingly thrived its economy beyond the goggles of many experts. Reuters reported that more than 100,000 Russians have fled to Georgia, which is set to become one of the fastest growing economies in the world this year, following the Russian invasion of Ukraine in February and President Vladimir’s partial mobilization order. Putin in September.
Most of the world is gradually heading into recession, but according to international institutions, Georgia is experiencing a consumer-oriented boom and economic output is expected to grow by a record 10% in 2022, surpassing active emerging markets such as Vietnam. and Kuwait, benefiting from the high oil prices of oil exporters.
Georgia, bordering the Black Sea, has an economy of $ 19 billion and a population of 3.7 million.The region is known for its mountains, forests and wine country.
“Economically, Georgia is doing very well right now, there is a kind of boom, from micro to large corporations, I can’t think of any sector that has had problems this year.”
Immigration data shows that at least 112,000 Russians moved to Georgia this year. According to the Georgian government, the first wave of immigrants amounted to 43,000 after Russia invaded Ukraine on February 24 and Putin suppressed the internal anti-war wave; the second wave appeared after Putin ordered a nationwide mobilization in late September.
Whether or not Georgia’s economic boom will last has puzzled many experts. The country’s economic fortunes are closely tied to its large neighbor Russia through exports and tourism, and experts expected that the Russian-Ukrainian war would have tragic consequences for the former Soviet republic.
For example, in March the European Bank for Reconstruction and Development (EBRD) predicted that the conflict in Ukraine would hit Georgia’s economy hard. The World Bank made a similar forecast in April, claiming that Georgia’s economic growth would drop to 2.5% in 2022, from 5.5% previously.
Dimitar Bogov, chief economist for Eastern Europe and the Caucasus at the European Bank for Reconstruction and Development, said: “Although we all expected … the war in Ukraine would have a serious negative impact on the Georgian economy so far. We haven’t seen these The risks are real. On the contrary, we are also seeing pretty good economic growth in Georgia this year, in double digits. “
But a stellar performance doesn’t benefit everyone. The influx of tens of thousands of Russians into Georgia, many of them tech professionals with pockets full of cash, has pushed up prices and reduced space for some Georgians in the rental and education market.
Entrepreneurs also fear that the Georgian economy could face a “hard landing” if the war ends and the Russians return home.
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