The World Bank’s data show that Georgian GDP will have decreased by six per cent in 2020, whereas the bank forecasts the Georgian economy to grow by four per cent in 2021 and by six per cent in 2022.

The bank writes that regional GDP in Europe and Central Asia is estimated to have contracted 2.9 per cent last year, while this year the regional economy is forecast to expand only moderately by 3.3 per cent, ‘as the resurgence of COVID-19 cases causes persistent disruptions to activity’.

The COVID-19 pandemic has generated a major health and economic crisis in the region that has been compounded by social unrest and conflict. After stabilizing in mid-2020, the rate of cases sharply accelerated in the fourth quarter, forcing governments to maintain or reintroduce mitigation measures,” write the bank about the Europe and Central Asia region.

The global economy decreased by 4.3 per cent in 2020, says the World Bank.

The global economy is expected to expand by 4 per cent in 2021, says the bank ‘assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year.’

To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance,” said World Bank Group President David Malpass.

The pandemic has greatly exacerbated debt risks in emerging market and developing economies; weak growth prospects will likely further increase debt burdens and erode borrowers’ ability to service debt,” said World Bank Acting Vice President for Equitable Growth and Financial Institutions Ayhan Kose adding that “the global community needs to act rapidly and forcefully to make sure the recent debt accumulation does not end with a string of debt crises. The developing world cannot afford another lost decade.”

As severe crises did in the past, the pandemic is expected to leave long lasting adverse effects on global activity, writes the World Bank, noting that it is likely to worsen the slowdown in global growth projected over the next decade due to underinvestment, underemployment, and labor force declines in many advanced economies.