Georgian PM warns of potential GDP drop If sanctions imposed against Russia

Irakli Kobakhidze, the Prime Minister of Georgia, has predicted that the introduction of sanctions against Russia could result in a significant drop in the country’s GDP, potentially declining by at least 10 per cent in the first year, with pessimistic estimates suggesting a decrease of up to 18 per cent.

He made these statements during an interview with the Adjara TV and Radio Public Broadcaster, Caliber.Az reports.

Kobakhidze noted that Georgia's trade with Russia represents a mere 0.3 per cent of its overall foreign trade, asserting that sanctions imposed by Georgia would not adversely affect Russia. However, he emphasized the negative repercussions for Georgia's economy, citing economic forecasts that indicate a substantial downturn.

"Falling by 10 per cent means economic collapse, and this will eventually be the way to change the government," Kobakhidze stated.

The Prime Minister contrasted this potential decline with the 6.5 per cent economic contraction experienced during the COVID-19 pandemic. Despite these concerns, the Georgian government anticipates a GDP growth of 8 per cent in 2024, building on a 7 per cent increase in 2023 and a notable 10.4 per cent rise in 2022.

By Vafa Guliyeva