Georgian approach to COVID-19

Abstract

The COVID-19 pandemic, declared a global threat by the World Health Organization 2020, is a new challenge in the modern world. The virus has spread to almost every country, and this fact has affected many aspects, including the economy and healthcare. A new crisis has begun in the world, which is very difficult to overcome. When the spread of the virus had just begun in the Chinese city of Wuhan, meanwhile Georgian government started discussion about the seriousness of this virus. In Georgia, the virus had a negative impact on the economy, healthcare and the social status of citizens. To some extent, the crisis triggered by fears of a pandemic, as so far no governing body, as well as the public, has had no experience in dealing with threats of a similar magnitude. The ongoing processes in the world have become force majeure due to the rapid growth of the pandemic, resulting in the inability to share, use and coordinate the knowledge, which countries have accumulated in the fight against the virus. If such in-depth studies were available, Georgia would be able to reduce the expected economic downturn based on their analysis. As soon as the first case of Covid infection was confirmed, citizens panicked and began to over-purchase food and necessities for further storage and use. This fact caused the first micro shock to the economy, which was manifested in the depreciation of the national currency against the dollar, in its instability, in addition there arose to the real threat to logistics and supply. Rising unemployment, rising risk of bankruptcy for small and medium-sized businesses, rising poverty rates, stagnant tourism businesses and declining international remittances are a combination of aspects that play an important role in shaping Georgia’s economic climate. The deterioration of these indicators means the aggravation of the economic crisis inside the country. According to the data, the contribution of tourism is 21.3% of Georgia’s GDP, thus the problems created in this segment will be dramatically reflected on the business entities operating in this sector as well