“If the negative impact of the coronavirus outbreak deepens, the government will have to introduce fiscal support measures”

TBILISI(BPI)- If the negative impact the coronavirus can bring to the Georgian economy deepens, the government will have to introduce fiscal support measures, Eva Bochorishvili, an analyst at Galt & Taggart brokerage company, says.

According to Bochorishvili, in the current  situation it is not excluded that the  government will be forced to take loans in the international market to help the economy.

“Three different scenarios cab be developed  – the first provides for a speedy  recovery of the global economy from the crisis  within about 2 months. The second predicts a much slower not earlier than in the 3rd quarter. The third scenario provides for a global economic decline, ”she explains.

In Eva Bochorishvili’s words,  if the third scenario is developed, fiscal stimulation, including through  external borrowing,  will be very important as the current budget parameters provide for such an opportunity. The state’s support can keep the reasonable lari’s rate, ”she points out.

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