The 2020 spring economic issue by the World Bank for Europe and Central Asian region illustrates the economic growth outcomes that may take place due to the novel coronavirus current pandemic.
Following the scenarios, Europe and Central Asia will experience an economic drop in 2020, with the rate teetering from -4.4 and -2.8 percent until 2021.
Money transfers or healthcare subsidies for vulnerable groups of people, short-term business loans, and tax allowances to the companies are of critical importance to mitigate economic recession and maintenance of jobs.
The World Bank says that small and average enterprises affected by the situation will receive substantial benefit from state subsidies.
Countries are receiving fast track support to help in the fight against #Coronavirus. @WorldBank Group is prepared to deploy up to $160 billion over the next 15 months. https://t.co/XbI2zGmd53 pic.twitter.com/jG5jOW7xYV
— World Bank (@WorldBank) April 9, 2020
Under the prognosis, the GDP growth will sharply drop in Georgia and reach 0% in 2020.
Bank specialists say it can mitigate by 2% through fiscal stimulations.
The World Bank expects the fiscal deficit to hit 5.2% of the GDP in 2020.
Several factors will affect the Georgian economy: transport restrictions influencing travel and tourism and restrictive measures reducing local demands.
The World Bank will spend 160 billion USD to support countries for the upcoming 15 months.
Bela Gelashvili
News Author