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Georgia is able to cope with the crisis: the representative of the World Bank

Georgia is able to cope with the crisis: the representative of the World Bank

In the short term, the Georgian authorities need to ensure macroeconomic stability, WB regional director recommends 12.04.2022, Sputnik Georgia

2022-04-12T00:05+0400

2022-04-12T00:05+0400

2022-04-12T00:05+0400

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TBILISI, April 11 – Sputnik. The World Bank believes that Georgia is able to cope with the crisis mainly thanks to reasonable buffers, said Sebastian Molineus, WB Regional Director for the South Caucasus. According to the World Bank, the events in Ukraine will negatively affect the Georgian economy due to a reduction in trade, tourism and remittances, as well as an increase in commodity prices. The Regional Director of the World Bank voiced recommendations for Georgia to overcome the current crisis. stability. To do this, we must continue to implement inflation-targeting monetary policy, which is very important. Of course, fiscal response should not lose sight of fiscal sustainability,” Molineus said. According to him, the social safety net is also an important aspect in terms of response measures. At the same time, the formula for targeted social assistance needs to be actually improved in order to make it available to those who really need it. The World Bank lowered its growth forecast for the Georgian economy due to the situation in Ukraine > look for opportunities for economic cooperation with countries less affected by the crisis, as well as help firms move from existing export markets, such as Russia, to new markets, be it the EU, Turkey, Central Asia or other regions,” said the regional director. In Molineus’s view, the long-term structural reform agenda must not be overlooked. “We must continue to invest in human capital to pave the way for long-term economic growth. We need to increase productivity in all sectors of the economy, increase competition and create a business-friendly environment in Georgia “- emphasized the regional director of the World Bank. He noted that thanks to the strong partnership and cooperation between the World Bank and the government of Georgia, it will be possible to withstand the current shocks.

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In the short term, the Georgian authorities need to ensure macroeconomic stability, recommends WB Regional Director

TBILISI, April 11 – Sputnik. The World Bank believes that Georgia is able to cope with the crisis mainly thanks to reasonable buffers, said Sebastian Molineus, WB Regional Director for the South Caucasus.

The World Bank on the eve lowered its growth forecast for the Georgian economy for 2022 from 5.5% to 2.5%. According to the World Bank, the events in Ukraine will have a negative impact on the Georgian economy due to a reduction in trade, tourism and remittances, as well as an increase in commodity prices.

“The macro-financial framework is sound and the banking sector as a whole is strong and stable in the face of a new crisis. Therefore, we can believe that with the support of international partners such as the World Bank, we can overcome the crisis together,” Molineus said.

The Regional Director of the World Bank voiced Georgia’s recommendations for overcoming the current crisis.

“In the short term, it is necessary to ensure macroeconomic stability. To do this, we must continue to implement inflation-targeting monetary policy, which is very important. Of course, fiscal response should not lose sight of fiscal sustainability,” Molineus said.

According to him, the social protection system is also an important aspect in terms of response measures. At the same time, the formula for targeted social assistance needs actual refinement in order to make it accessible to those who really need it.

The World Bank lowered the growth forecast for the Georgian economy due to the situation in Ukraine >>

“And thirdly, it is necessary to look for opportunities for economic cooperation with countries less affected by the crisis, as well as help firms move from existing export markets, such as Russia, to new markets, be it the EU, Turkey, Central Asia or other regions,” noted the regional director.

The main thing, according to Molineus, is the need not to lose sight of the program of long-term structural reforms.

“We must continue to invest in human capital to pave the way for long-term economic growth. We need to increase productivity in all sectors of the economy, increase competition and create a business-friendly environment in Georgia,” the WB Regional Director emphasized.

He noted that thanks to the strong partnership and cooperation between the World Bank and the government of Georgia, it will be possible to withstand the current shocks.

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