Title:
THE PROBLEM OF OVER-INDEBTEDNESS IN THE CORONA ECONOMY (CASE OF GEORGIA)

Authors:
Emzar Jgerenaia, Maka Ghaniashvili, Georgia

Abstract:

Any economic-financial crisis, in particular, raises the issue of debt service, which has accumulated particularly excessively around the world in recent decades. The crisis caused by Covid-19 is no exception. Governments have used large-scale stimulus packages to move the pandemic crisis more or less painlessly. However, it should also be noted that these stimulus packages serve less the goals of sustainable economic growth, they were aimed at neutralizing more immediate financial and economic shocks. These steps were inevitable today, but what will follow in the years to come? Governments’ debts have risen sharply since February-March of 2020. Georgia is no exception. Below, on the example of Georgia, we discuss the risks associated with public debt, assess the current situation and prospects for the near future.