Galt & Taggart Investment Bank has published a report on the possible impact of the coronavirus on Georgia’s economy.
The financial institution calls on government departments to take active fiscal and monetary measures such as easing credit regulations, social vouchers distribution, and temporarily ceasing payments to the pension fund.
Among the measures proposed by financiers are social support for the vulnerable groups, financing of utility tariffs, a 50% reduction in property taxes, attracting international financing, reviewing and, in some cases, canceling business regulations, softening financial conditions for banks (capital requirements, etc.), simplification of banking regulations, support of strategically important sectors of the economy.
The study recommends that the government develop a new economic model given the global situation, namely, to identify those sectors of the economy with production potential for the local market and exports.
Galt & Taggart considers it necessary to stabilize the national currency exchange rate by cutting imports by $ 2, 6 billion and attracting foreign aid by 1 billion.
The investment bank also assesses the possible impact of the coronavirus crisis on the Georgian economy in three scenarios - optimistic, pessimistic and medium.
According to the pessimistic scenario, Georgia’s economy will fall by 6% in 2020, with annual losses of $ 4.4 billion.
The optimistic scenario results in a $ 1.7 billion loss in the economy , an average of $ 3.1 billion.