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Financial assistance will be provided as loans on highly favourable terms, the Council said.
Among Western Balkans countries, Albania will receive €180mn, Bosnia & Herzegovina - €250mn, North Macedonia - €160mn, Kosovo - €100mn and Montenegro - €60mn. Serbia was not included in the financial package. Ukraine will receive the biggest chunk of the assistance package, €1.2bn. The EU also allocated money for Georgia (€150mn), Jordan (€200mn), Moldova (€100mn) and Tunisia (€600mn).
The EU assistance will help the countries to cover their immediate financing needs which have increased as a result of the coronavirus pandemic. Together with the support from the International Monetary Fund (IMF), the funds will help enhance macroeconomic stability and create space to allow resources to be allocated towards protecting citizens and to mitigating the negative socio-economic consequences of the coronavirus pandemic.
The MFA funds will be made available for a period of 12 months.
3.0 Macro Economy
Georgia - Main Macro Indicators 2015 2016 2017 2018 2019* Q1 2020*
GDP real growth (y/y, %)
3.0 2.6 4.8 4.8 5.1 2.2
GDP per capita (at current prices), 4,012.6 4,062.1 4,358.5 4,722.0 4,763.5 1,017.1 USD
GDP per capita (at current prices), GEL
9,109.4 9,613.9 10,933.9 11,968.0 13,428.9 2,976.6
GDP at current prices, (USD bn)
14.9 15.1 16.2 17.6 17.7 3.8
GDP at current prices, (GEL bn)
33.9 35.8 40.8 44.6 50.0 11.1
GDP deflator (y/y, %)
5.8 2.6 8.5 4.4 6.6 6.1
Source: Geostat
3.1 Macroeconomic overview
Georgia’s GDP shrinks 12.6% y/y in Q2
Georgia’s GDP contracted by 12.6% y/y in Q2 following the modest 2.2% y/y advance recorded in Q1. The country thus suffered a 5.8% y/y contraction in growth in H1.
"Despite all the difficulties, the June statistics show that our economy is gradually recovering and the first signs of this are obvious—the pace of economic decline is slowing down," minister of economy Natia Turnava commented.
In June, the Georgian economy shrank by 7.7% y/y, a much more moderate contraction compared to the -13.5% y/y seen in May and -16.6% y/y posted in April, according to rapid estimates put out by the national statistical office Geostat.
According to Turnava, it was noteworthy that the rate of registration of
10 GEORGIA Country Report August 2020 www.intellinews.com
