Leah Gutierrez, Director General of the Central and West Asia Department at the Asian Development Bank (ADB), stated that the impact of the Middle East conflict is expected to be reflected in prices in Georgia rather than in supplies. The ultimate outcome will depend on the duration of the conflict.
According to her, the Middle East conflict will increase inflationary pressure in Georgia. Consequently, a reduction in foreign direct investment and tourist flows from the Middle East region is anticipated.
ADB: Georgia remains a strategic bridge between Asia and Europe
At the same time, Gutierrez noted that by utilizing transport via the Middle Corridor, Georgia could mitigate the pressure on various economic sectors to a certain extent.
The ADB representative stated that the Middle East conflict could also affect tourism, as a portion of tourists in Georgia come specifically from the Middle East region.
It is noted that, according to the Asian Development Bank’s forecast, Georgia’s economic growth rate will slow from 7.5% in 2025 to 5.5% in 2026.
Furthermore, assuming an early stabilization of the Middle East conflict, the Asian Development Bank expects inflation in Georgia to be at 3.8% this year.
As a reminder, the ADB Annual Meetings are being held in Samarkand, Uzbekistan, from May 3–6. The main theme of this year’s forum is “Crossroads of Progress: Advancing Towards a Connected Future for the Region.”
Asian Development Bank: Diversification is Key to Georgia’s Energy Security