The budget project of 2020 is appended with three macro-economic scenarios of the Finance Ministry of Georgia: Basic, Pessimistic, and Optimistic alternatives for economic development.
Under the optimistic scenario, annual economic growth will be -2.7%.
The Finance Ministry made the calculations based on the following preliminary data: economic growth in April 2020 was -16.6%, while the average increase for the first four months of 2020 was -3.6%.
"Compared to the baseline scenario, in the optimistic scenario, tax revenues about GDP in 2020 are 1.1% higher, and this value is 22.0%. Thus, tax revenues under the optimistic scenario are 776 million lari more than the basic scenario stipulates," the Finance Ministry reports.
As the basic scenario reports, due to border restrictions, tourism incomes in 2020 will decrease by 50% compared to 2019.
The decline will amount to 1.65 billion US dollars.
Following the pessimistic scenario, tourism revenues will drop by 80% in 2020.
Bela Gelashvili
News Author