IMF: Tourism Industry Incomes in 2021 will Be 25% of the 2019 Incomes

The GEL exchange rate deprecation amid the current economic and political situation is not a surprise.

As IMF resident representative in Georgia Selim Cakir noted, the volatility of foreign currencies in the neighboring trade partner countries also burdens the GEL exchange rate.

“The world is facing the major economic crisis and its outcomes burden the Georgian economy too. The exchange rate volatility in this situation is a normal fact. You have witnessed how the tourism industry was affected. The time is required for its recovery.

The current account deficit has almost doubled compared to 2019. Its ratio in GDP has increased to 9.7% from 5.4%. This deficit will start declining along with the tourism sector recovery. I expect the tourism industry incomes in 2021 to be only 25% of the 2019 total incomes. We expect the deficit in GDP to decline to 8.5% from 9.7%. Your region has also suffered from the Azerbaijan-Armenia war. Depreciation of foreign currencies in your trade partner countries also affect the GEL exchange rate. Political instability influences inventors’ moods and decisions”, Selim Cakir noted.