A peace agreement between Azerbaijan and Armenia could lead to the emergence of new trade routes bypassing Georgia, while also attracting more investment to the region as a whole, says the assessment published by the International Monetary Fund (IMF) mission on the Georgian economy, APA’s local bureau reports.
The document notes that the escalation of the conflict in the Middle East could hinder tourist flows to Georgia from Israel and the Gulf countries, increase inflation, and tighten financial conditions.
“However, a prolonged conflict may also lead to the redirection of financial and tourism flows to Georgia and an increase in transit along the Middle Corridor. A peaceful resolution of the conflict in Ukraine could eliminate some of the gains from migration, financial inflows, and transit trade, while at the same time enabling broader regional stability and confidence,” the document says.
The assessment also emphasized that difficulties in relations with the European Union could weaken investor sentiment and foreign direct investment in Georgia, while a planned $6.6 billion real estate project by a UAE investor has significant potential for growth and employment.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
