EFFECT OF COVID-19 ON THE MAIN MACROECONOMIC INDICATORS (GEORGIAN CASE)

Revaz Geradze

Abstract


From the first day of the COVID-19 pandemic, it was clear that negative impact of it would hit both, demand and supply side of the economies in different countries all over the world. First and most severe obstacle for the economies was supply side shock caused by restrictions imposed by the governments on some economic activities. On the other hand demand side shock was also solid, economic agents were massively postponing their decisions regarding consumption and investment. This paper aims to conduct descriptive statistical analysis of the Effects of COVID-19 on the main macroeconomic parameters of Georgia. Moreover, research aims to identify and classify country level various support schemes and policy measures taken by the government during the COVID-19 pandemic. In the paper it is discussed that pandemic severely affected almost all the main macroeconomic indicators of Georgian economy. On the other hand, supply shock, some demand side policy measures, rise of import prices and post pandemic hike in demand originated inflationary process and high prices became a post pandemic problem of Georgia.

Keywords


COVID-19, effect of crisis, macroeconomic indicators, Real GDP growth, Unemployment rate, Inflation, Final Consumption, Monetary policy rate, Exchange Rate.

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