Georgia sees economic boom due to mass migration of Russians there

Georgia is witnessing an economic boom due to the mass movement of Russians there

Georgia, which, after the announcement of partial mobilization in Russia, accepted a whole wave of Russians, showed signs of economic boom. The demand of compatriots for the Georgian direction is explained by the fact that the country allows Russians to live, work, and open a business without the need to obtain a visa.

According to Reuters, more than 112,000 Russian citizens have emigrated to Georgia this year. In addition, it is stated that in 2022 Georgia will record a 10 percent increase in production. In a conversation with the agency, the CEO of Georgia's largest company TBC, Vakhtang Butskhrikidze, said that things are going very well in the Georgian economy, and noted that all areas are doing well, from micro to corporations. “From an economic point of view, things are going very well in Georgia. All industries are doing well, from micro to corporations. I can't think of a single sector that had problems this year,” he said.

Against the backdrop of a global crisis that states in different parts of the world are experiencing, the economic boom in Georgia has baffled many experts. However, this was not seen as a positive development by everyone, as the cost of living for Georgians also increased. In general, the data showed that with the arrival of tens of thousands of Russians, housing, as well as rental prices, as in Turkey, rose. Thus, according to TBC-bank, rent in Tbilisi has already increased by 75% this year.

The same source noted that in five months, between April and September, Russians transferred more than 1 billion euros to Georgia through banks of other money transfer services, which is five times more than in the same months last year. According to the TBC CEO, approximately 50% of Russians who moved to Georgia from the Russian Federation work in the technology sector. Most of the Russians who have come to the country are “upscale, wealthy people” with business ideas, said David Keshelava, a senior fellow at the International School of Economics at Tbilisi State University. In his opinion, they may also be interested in investing in Georgia.

However, due to expectations about growth prospects and the simultaneous fear of a possible outflow of this layer of Russians from Georgia, the authorities are worried that the local economy may face a tough drawdown. Therefore, the growth that the country registered in 2022 is temporary and does not guarantee sustainable growth in subsequent years.

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