COVID-19 Update
At this writing, Georgia has 928 known infections, 794 have recovered, and, regrettably, 15 deaths attributable to the coronavirus. Three new cases of infection have been discovered recently, while recoveries continue.
Recovery Gains Momentum
The Georgian government continues to study and debate its earlier conclusion that international travel to Georgia could be restarted, under new restrictions, on July 15th. The Civil Aviation Agency now schedules a resumption of international flights for August 1st, as concerns are mounting about the increase of COVID-19 infections in neighboring countries. Stressing “a cautious and gradual approach,” the Inter-Agency Coordination Council, chaired by the Prime Minister, is monitoring international travel trends closely, as well as the success of containing the coronavirus of “partner countries” whose citizens seek to travel to Georgia. A number of strategies to revive tourism are being studied. Prime Minister Giorgi Gakharia has stressed the dangers of allowing a “second wave” of the pandemic to affect Georgia, noting that the virus has not yet been defeated. Today’s stable situation is, rather, “a result of being able to manage the spread of the virus.”
Recent economic projections contain both promising and cautionary messages for the Georgian population and Georgian businesses. On the positive side, the consumer index in Georgia is rising, based on the population’s renewed confidence that a corner has been turned and that the economy is again gaining steam. Less welcome is the reality that reduced demand during the height of the pandemic caused many Georgian companies to reduce their employment rolls, or that the “Khachapuri Index” has increased markedly. More optimistically, the Asian Development Bank argues that Georgia’s success in dealing with COVID-19 could lead to long-term gains. It notes that “as Georgia’s economy restarts, it has a unique opportunity to initiate a new era of growth that is more diversified and inclusive.”
United States ambassador to Georgia Kelly Degnan announced her intention to expand investment in Georgia by U.S. companies. “We have quite extensive and large-scale programs in the field of energy, small and medium production, agriculture and the maritime sector,” Ambassador Degnan observed. “We work closely with the Minister and the Ministry of Economy and Sustainable Development, and we look forward to further expansion of our cooperation to attract more U.S. investment in Georgia,” the ambassador noted, while pointing out that U.S. foreign direct investment in Georgia increased by 34% in the first quarter of 2020 despite the pandemic.
Emerging Europe rates Tbilisi tops among Europe’s newest members in its Business-Friendly Cities Perception 2020 Survey rankings for “Economic Potential.” Notes Emerging Europe: “Georgia has long been recognised as one of the easiest places in the world in which to do business, regularly topping the World Bank’s Ease of Doing Business rankings for emerging Europe. In 2019 the country placed seventh overall, commended in particular for the streamlined and easy way that new businesses can be registered.” Kakha Kaladze, Tbilisi’s mayor was pleased. “Being acknowledged by Emerging Europe as the best city for Economic Potential underlines our effort and diligence in creating a business-friendly environment and uncovering the untapped potential of the city,” he said. “We are truly delighted that Tbilisi has been recognised as an up and coming destination, highlighting the city’s thriving opportunities. This award will significantly benefit our international positioning and attract more investment. I welcome all interested parties to discover business possibilities and I assure you that you’ll be convinced in the undisputable advantage of Tbilisi as your future business destination.”
Meanwhile, Georgia’s effective management of the pandemic has continued to attract attention from the world’s premier travel and tourism organizations. Lonely Planet has named Georgia as one of the safest destinations for travellers. Britain’s The Telegraph echoed this theme. “When Britons are permitted to visit,” notes their author, “the capital of Tbilisi has much to offer.” Meanwhile, Georgia’s Ministry of Education, Science, Culture and Sport unveiled a new app for iOS and Android platforms for assisting tourists that traces Georgia’s many cultural “routes,” for example of German settlers coming to Georgia, the winemaking heritage, and Georgia’s famous Jewish settlements.