Georgia's Economic Dependence on Russia: Impact of the Russia-Ukraine war
Tbilisi. In 2022, Georgia received about 3.6 billion USD in income from Russia through remittances, tourism, and the export of goods, which is 3 times more than the income received from Russia in 2021 from the same sources. This number by 2 times exceeds the income received from Russia in 2019, before the beginning of the Covid-19 pandemic. In 2022, the income from remittances, tourism, and export of goods from Russia was 14.6% of the Georgian economy (GDP), while in 2021, this figure was 6.3%, and the maximum – was 9.9% in 2018. Therefore, Georgia's economic dependence on Russia increased compared to previous years. The growth is mainly due to the soaring remittances.
Georgia's growing economic dependence on Russia constitutes a threat to the country, as Russia has repeatedly utilized economic relations to politically leverage independent countries. Furthermore, the increased economic dependence on Russia is a threat to Georgia in terms of macroeconomics too as the Western sanctions and the war caused the economic crisis in Russia that will continue in 2023 as well.
Source: transparency.ge
