Georgia’s Economy Booms Following Dramatic Influx of Russians
Georgia is to become one of the countries whose economy has grown the fastest this year due to the high number of Russians that have reached its territory.
Following Russia’s invasion of Ukraine and Putin’s call for mobilisation, a high number of Russians decided to leave their country for Georgia, and this has led to the latter’s economy growing as the country allows Russians to live, work, as well as set up a business without needing a visa, SchengenVisaInfo.com reports.
According to Reuters, more than 112,000 citizens of Russia have emigrated to Georgia so far this year and the same has said that the latter is expected to record a ten per cent growth in economic output for 2022.
Commenting on the country’s economic situation, the CEO of Georgia’s largest back TBC, Vakhtang Butskhrikidze, said for Reuters that Georgia is doing very well on the economic side and noted that all industries are doing well from micros up to corporates.
“On the economic side, Georgia is doing very well. All industries are doing very well from micros up to corporates. I can’t think of any industry which this year has problems,” the statement of Butskhrikidze reads.
Reuters further explains that Georgia’s economic boom has confounded many experts. However, this has not been seen as a positive thing by everyone as the cost of living has increased for Georgians.
In general, data show that with the arrival of tens of thousands of Russians, housing, as well as rental prices, have increased. According to TBC bank, rent in Tbilisi has already increased by 75 per cent this year.
The same source noted that between April and September, Russians transferred over €1 billion to Georgia via banks of other money-transfer services. Such an amount is five times higher than during the same months last year.
Around half of the Russians that have reached Georgia so far are from the tech sector, TBC CEO has explained.
Commenting on the arrivals from Russia, Davit Keshelava who is a senior researcher at the International School of Economics at Tbilisi States University said that the majority of Russians who have entered the country are “high-end, rich people” who have business ideas, suggesting that they might also be interested in investing in Georgia.
Due to this, business leaders have expressed their worries about the country possibly facing a hard landing in case Russians return home.
In addition to the above-mentioned, experts have said that the growth that the country has registered this year is temporary and it does not guarantee sustainable growth in the following years.
