Ramaz Gerliani, director of the Center for Economic Transformation, comments on the current processes in the country in the air of the radio station “Commersant”.
According to Gerliani, election results, expected political uncertainty and sanctions will cause an outflow of capital from the country.
“Since the political consequences could develop into a rather negative context, this will also have a negative impact on economy.
We do not yet know what and how will happen, but there is an expectation that the Georgian business environment will switch to observation by international partners, or to a mode of reducing its activity in our country. All this can lead to additional pressure on the lari.
When funds leave the country, it causes the converted currency to depreciate.
We expect a reduction in investment inflows after elections and if the situation will be aggravated by political uncertainty it will affect the country’s economy.
The post-election process is expected to be accompanied by a decline in investment flows from the eurozone. If you add political uncertainty to all this, it will definitely affect the country's economy.
Many businesses focused on the European market may leave the country.
At this stage exports to Europe hit historic low not only because there are informal barriers in business, but also because the attitude towards the European market was so inadequate,” Ramaz Gerliani notes.
