The Impact of the Global Pandemic on the Georgian Economy

Ketevan Shengelia Ketevan Shengelia
2022 Economics  
The shock of the pandemic has considerably impacted the outlook for economic growth in countries all around the world. This is particularly true in developing countries. The article analyzes how the living standards have deteriorated as a result of the pandemic. The rise in unemployment and inflation rates, which exacerbated poverty and property differentiation, is examined. The values and norms of the social system have changed radically, posing major threats to fundamental structures and
more » ... sitating critical decisions. Uncertainty and surprise are the two negative shocks that have befallen mankind as a whole. The world was hit by a global economic crisis, which resulted in a capital shortage. The paper substantiates the need for more diversification for the recovery of the Georgian economy.Tourism cannot be our sole source of income. Agriculture, industry, and service sectors should all be developed. Georgia's economic growth is heavily reliant on investment, manufacturing, and free trade. Domestic entrepreneurs will gain contemporary management skills, value their own human capital more, acquire high-tech equipment, and engage qualified people to upgrade their skills as a result of attracting foreign investment. As a consequence, product quality will improve, labor productivity will increase, product costs will drop, and prices will stabilize. Eventually the economy of the whole country will gain strength, the volume of GDP and the standard of living will increase. Keywords: Georgian economy, negative supply shock, pandemic, standard of living.
doi:10.36962/ecs105/3/2022-123 fatcat:td4bxpygafc4hfgnrfdiuei22q