Thursday, December 5, 2024

Here's Why Georgia Chose Russia Over The EU

"Bordered by Russia to the north and Turkey, Armenia and Azerbaijan to the south, Georgia is taking a sharp turn towards Russia. The government suspended talks on accession to the European Union after the European Parliament resolution on Georgian election fraud. Georgians took to the streets and fierce protests are ongoing; however, looking at the results of the Georgian economy, many things become clear.
The
Georgian Dream party has been ruling Georgia almost independently since 2016, although it has been involved in government since 2012, but then as part of a coalition. It is now facing strong unrest in the country after elections that have been allegedly rigged, at least according to the European Parliament. In response, the Georgian government has suspended the accession process to the European Union for four years.
Looking at the economic results, it must be admitted that during the
Georgian Dream government, the country developed economically at a very high rate, one of the highest in the world. This year, according to the IMF’s October forecasts, it will see 7.6 percent GDP growth, which is the sixth-highest growth in the world. In 2023, only 11 countries developed faster than Georgia, including Georgia’s neighbor Armenia.
At the same time,
Georgia’s most important export is not the famous Georgian wines, but transport equipment. Its foreign sales increased since 2016 from $151 million per year to $872 million in 2023. What’s more, counting the 12 months to the end of October 2024, it is already as much as $2.5 billion, or as much as 36.4 percent of Georgian exports — according to data from the Georgian Statistical Office.
When it comes to wine,
Russia is also the largest recipient. In the 10 months of this year, out of the $237 million of wine exports, Russians bought $161 million. Interestingly, Poland is the second-largest recipient, but this means imports amounting to only $13 million.
As can be seen from the above,
Georgia’s economy benefits from contacts with Russia. Economic links with the European Union are much smaller. Georgia is making money from the war in Ukraine, fueling one of the highest economic growth rates in the world." ZeroHedge

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