International and local experts, representatives of private and public sectors, as well as international organizations participated in a panel discussion “War in Ukraine: Challenges, Risks and Impact on Georgia’s Economy,” which was organized by the International School of Economics (ISET) at Tbilisi State University and ISET Policy Institute.

Russia’s invasion of Ukraine and the impact of hostilities on Georgia’s and global economies; growth of prices on food and other consumer products, changes in energy policy and other topical issues were discussed at the meeting.

Rector of TSU, George Sharvashidze said that very interesting opinions were expressed during the panel discussion: “This is the format, where we can discuss the impact of the war on the economic processes in Georgia, as well as what is the solution and what expects us tomorrow. We also discussed price formation on various markets, for example, rent of apartments and increased prices that also caused harm to students. We also discussed Georgia’s possible response to these challenges.”

Tamar Sulukhia, director of ISET and ISET Policy Institute, noted that the participants of the panel discussion focused on the challenges, risks and opportunities for Georgia’s economy: “Russia’s aggression against Ukraine has completely changed the architecture of relations between the countries. Sanctions caused significant changes. Energy policy pursued by a number of countries has changed to achieve their independence from Russian energy. Food prices have reached an all-time high on global market. And in this situation, Georgia has appeared under a huge influence. Georgia’s economy faces new risks, new challenges, new opportunities.”

The participants discussed Georgia’s interests, current economic and fiscal situation, future risks and the ways of their prevention to ensure macroeconomic stability in the country.

“If we supposed in the pre-pandemic period that Georgia’s economic growth would be 5%, now we think that it will be about 3-4%. Inflation is a huge challenge for Georgia, the entire region and globally, because Russia and Ukraine were taking a huge place in the supply chains,” President of the National Bank of Georgia, Koba Gvenetadze said, adding that prices on oil as well as other products have increased significantly. He also noted that this circumstance prompts the National Bank of Georgia to maintain its tightened policy. The regional risks have increased that is not good for the investors who have invested or plan to invest money in Georgia, he added.

Ukrainian citizen Yaroslava Babich, a senior economist at ISET Policy Institute, said that the discussion was necessary for both Ukraine and Georgia. 

Tymofiy Mylovanov, an advisor of the Ukrainian President’s Administration, Associate Professor at University of Pittsburgh, President of Kyiv School of Economics and former Minister of Economy of Ukraine, joined the panel discussion online. He thanked Georgia for providing medical and humanitarian aid to Ukraine, as well as for extending solidarity with Ukrainian students.

The participants also focused on future actions necessary to prevent the aggravation of economic crisis in Georgia and the region, as a whole.