STORY: As the war in Ukraine grips Europe, one country experiences an unexpected economic boom. Georgia is on track to become one of the fastest growing economies in the world this year. The most important reason for this: More than 100,000 Russians have come to the country since the beginning of the Russian invasion and the partial mobilization to avoid being drafted. And with them comes a lot of money, says Vahtang Butskhrikidze from the largest Georgian bank, TBC: “All sectors are doing quite well, very well. I mean, starting with the micro-enterprises and going all the way up to the corporations – from retail to different sectors. I can can’t remember any industry having a problem this year.” Between April and September, Russians transferred more than $1 billion to Georgia through banks or money transfer services. According to the Central Bank of Georgia, this is five times more than in the same months of 2021. In 2022, the country is expected to record a 10% growth in economic output. However, economist Davit Keshelava warns that the boom could be over quickly: “People have no idea how long they will stay here. But if they leave, then yes, that will be a problem, because part of the demand that was there will not be there in the future. That could pose problems for economic growth and especially harm the construction sector, tourism and hospitality.” up prices and squeezes some Georgians out of the market. The apartments are becoming more and more expensive, in the capital Tbilisi alone rents have risen by 75 percent this year.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
