world

Russia “inadvertently” strengthened its little neighbor. “There was supposed to be a crisis, it turned out differently”

Russia “inadvertently” strengthened its little neighbor. “There was supposed to be a crisis, it turned out differently”

The first forecasts indicate that Georgia may see an increase in economic output this year by as much as 10%, while many other countries are threatened with economic contraction. Vakhtang Butskhrikidze, CEO of the country’s largest bank, TBC, said in an interview with the Reuters Agency that Georgia is doing very well and that “there is some boom”. He added that the good situation applies to both small enterprises and large corporations.

The rest of the text below the video

Such wealthy Russians contribute to the boom in Georgia. There are also downsides

What was happening surprised economists who agreed that the attack was Russia Ukraine will have a negative impact on Georgia. One of the reasons is the mass emigration of Russians. The first wave of up to 43,000 people arrived as soon as the aggression began, and the second, larger one, just after Putin announced partial mobilization. Estimates indicate that a total of 112,000 have left for Georgia since the beginning of the year. Russians.

Rich Russians coming to the country, thanks to their liberal policies, strongly strengthen Georgia. The Georgian central bar is supposed to be between April and September they transferred over $ 1 billion through banks. This is five times more than in the same period in 2021.

The Russians flee from mobilization to Georgia, September 28, 2022.

The Russians flee from mobilization to Georgia, September 28, 2022.


|
Davit Kachkachishvili / Anadolu Agency via Getty Images / Getty Images

“They are high class, rich people coming to Georgia with some business ideas and increasing consumption drastically. We expected the war to have many negative consequences, but it turned out completely different. It turned out to be positive, “Davit Keshelava, senior researcher at the International School of Economics at Tbilisi State University told Reuters.

The Russians flee from mobilization to Georgia, September 28, 2022.

The Russians flee from mobilization to Georgia, September 28, 2022.


|
Davit Kachkachishvili / Anadolu Agency via Getty Images / Getty Images

However, there are downsides. Wealthy and enterprising Russians are driving some Georgians out of the market. The massive influx of Russians also causes a drastic increase in prices, including renting apartments, which can be seen mainly in the capital, Tbilisi, where the rent has increased by 75%, and the authorities are calling the situation bolder and bolder “crisis housing“. The problem mainly affects students. Many of them lost their apartments, and the owners, breaking their contract with them, argued that it’s because “the Russians are willing to pay more.”

#Russia #inadvertently #strengthened #neighbor #supposed #crisis #turned #differently

Related Articles

Back to top button