Page 5 - GEORptJun20
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1.0 Executive summary
As most governments around the world struggle to contain the spread of COVID-19, Georgia has received steady praise from all corners for its handling of the pandemic. The government consulted key decisions with public health experts and epidemiologists early in the process. Out of concern for its citizens and healthcare system, Georgia halted international flights in March, sealed its borders and introduced severe lockdown measures on most of the population, including a near-total ban on mobility (including a one week car ban and a city lockdown of five largest cities) and commercial activity.
The country received an honourable mention alongside Taiwan and Iceland as one of the global leaders in the pandemic fight, partly credited to the swift government response and partly to societal resilience to crises.
As of May 18, only 701 people in Georgia were infected with COVID-19 and the number of deaths was in low double digits.
New rounds of relaxation measures have been confirmed in Georgia in line with a pre-defined plan aimed at restoring normal life that includes international tourism as of early July in the wake of the country’s coronavirus (COVID-19) lockdown. Domestic tourism in Georgia will recommence from June 15, while from July 1 the country will receive international tourists, Prime Minister Giorgi Gakharia announced on May 27.
While the government’s general policy may save the country from the most devastating impact of the pandemic in public health terms, the domestic political developments suggest that Georgian democracy is in for a difficult year with its democratic opposition and political pluralism under severe pressure.
The long-awaited agreement on electoral reform, reached in March by the government and main opposition forces and facilitated by the US and EU, was an important milestone in achieving greater political pluralism and stability in the runup to the upcoming parliamentary election, which, for the moment, remains scheduled for October 2020.
Georgia is expecting $1.5bn in financing from International Financial Institutions (IFIs) by the end of 2020, according to Georgian Prime Minister Giorgi Gakharia. This includes the disbursement of a $200mn loan tranche under the Extended Fund Facility (EFF) to help the country meet urgent balance of payments and fiscal needs stemming from the effects of COVID-19 pandemic. The World Bank is to provide $80mn in financial support to Georgia under its Fast Track COVID-19 Facility to help with efforts by the country’s government to mitigate and address the health and social impacts of the coronavirus pandemic.
Georgian parliament budget committee forecasts the economy to shrink by 10.7% y/y in the second quarter. Georgia’s GDP increased by 1.5% y/y in Q1, but then shrunk by 2.7% y/y in March, according to Geostat. The country’s central bank has said that following declines in domestic and external demand, Georgia's real economic output would contract by around 4% this year.
Georgian Prime Minister Giorgi Gakharia on April 24 unveiled a Georgian
5 GEORGIA Country Report June 2020 www.intellinews.com
