On 28 May, Georgia announced its fourth anti-crisis plan, in which the government will subsidize 4 percent of the interest rate of mortgage loans for five years. The subsidy will be issued for loans not exceeding 200,000 GEL and will only apply to those taking mortgages for the purchase of residential apartments that are newly built or under construction, from 1 June 2020 to 1 January 2021. The state will also ensure the completion of ongoing construction.
Agricultural and rural development play an important role in the country’s socio-economic development. The restrictions imposed during the pandemic have hindered spring agricultural works which have significantly worsened conditions for farmers and stalled their future potential. Consequently, the Georgian government developed an anti-crisis plan, “Caring for Farmers and Agriculture”, that was presented on 12 March. The proposal entails two forms of aid: direct assistance and sectoral support.
In April 2020 Consumer Confidence reached the lowest level ever recorded, driven by severe deterioration in expectations about the future. Notably, the present situation index component of CCI stands slightly higher than during the regional currency crisis and lari devaluation episode in May-November 2015.
Although the operations of many businesses and organizations have been brought to a crashing halt due to the ongoing COVID-19 pandemic, ISET has refused to allow the crisis to hinder its work. Over the last few months, all teaching and academic activity have been shifted online using Zoom, a format that works equally well for operations of ISET Policy Institute and its efforts to serve as a knowledge accumulation and exchange platform in the lock-down.
In March 2020 as a result of the COVID-19 pandemic, the global economy started to sink into what is expected to be the deepest worldwide recession since World War II. Despite unprecedented policy support, the majority of countries have failed to soften the fallout from the crisis. According to World Bank estimates, global GDP will contract by 5.2% year over year (y/y) in 2020. The United States and Euro Area are projected to shrink by 6.1% and 9.1% respectively, while the Chinese economy is expected to grow at just 1% in 2020.