Georgia reacted to the COVID-19 pandemic by immediately introducing aggressive measures. Closing international borders, declaring a state of emergency, shutting down public transportation, banning local travel and public gatherings, closing restaurants and shopping malls, and introducing a nighttime curfew—these are all instruments that were used by the country’s government and health authorities to stop the spread of the virus. As a result, the health system was not overwhelmed with COVID-19 patients.

The estimated real GDP declined by 16.6% in April 2020 yearly and by 3.6 percent in the first four months of 2020. In April, the estimated real growth compared to the same period of the previous year posted negative in almost all activities, except mining and quarrying. Moreover, VAT payers’ turnover, used in rapid estimations of economic growth, dropped by 32.8% annually over the same period.

While COVID-19 pandemic had a negative impact on the current investment expenditure of Georgian ICT companies, investment and hiring is set to increase in the future for most firms in this sector.

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.

ISET Policy Institute was contracted by International Republican Institute (IRI) to provide expert consultation to Georgian political parties and assist them in developing/updating party economic platforms in the run-up to the Parliamentary Elections 2020.