HomeEconomicGeorgia is witnessing an economic boom due to the mass migration of...

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

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

According to Reuters, more than 112,000 Russian citizens immigrated to Georgia this year. In addition, it is stated that in 2022, Georgia will record a 10 percent increase in the volume of production. In a conversation with the agency, the CEO of Georgia’s largest TBC company, Vakhtang Butshrikidze, said that things are going very well in the Georgian economy, and noted that all areas are thriving, from micro to corporations. “Economically, things are going very well in Georgia. All industries are thriving, from micro to corporate. I can’t think of any sector that had problems this year,” he said.

Against the background of the global crisis experienced by states in different parts of the world, the economic boom in Georgia has put many experts at a dead end. However, not everyone saw this as a joyous moment, 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 prices, as well as rental prices, increased, as in Turkey. Thus, according to TBC-bank, the rent in Tbilisi has already increased by 75% this year.

The same source noted that in five months, from April to September, Russians transferred more than 1 billion euros to Georgia through the banks of other money transfer services, which is five times more than in the same months last year. According to the explanation of the CEO of TBC, 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 “high class, rich people” who have business ideas, said David Keshelava, a senior researcher 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 the expectation of growth prospects and the simultaneous fear of the probable outflow of this layer of Russians from Georgia, the authorities are worried that the local economy may be threatened with a severe downturn. Therefore, the growth that the country registered in 2022 is temporary and does not guarantee sustainable development in the following years.

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