**Georgia’s Economic Benefits from Russia-Ukraine War May Be Short-Lived**
The Asian Development Bank’s Chief Economist, Albert Park, has warned that Georgia’s economic gains from the Russia-Ukraine war and sanctions on Russia may be temporary. Speaking at a meeting in Milan, Park highlighted three main geopolitical uncertainties that could impact the country’s economy.
According to Park, if sanctions are lifted on Russia, peace is restored in Ukraine, and President Donald Trump’s administration changes its policies, Georgia could lose part of the business it attracted during this period. The country has benefited from cargo transit through alternative routes since the start of the war, but this advantage may be short-lived if global trade patterns return to pre-war conditions.
**Uncertainty Ahead**
Park noted that there are three key factors that could lead to a loss of business for Georgia: the potential lifting of sanctions on Russia, the establishment of peace in Ukraine, and possible policy changes by a future Trump administration. These events would likely lead to a decline in cargo transit through alternative routes and a return to pre-war economic conditions.
**Becoming Cost-Efficient Key to Retaining Business**
To retain part of its business amid these uncertainties, Park advised Georgia to focus on becoming cost-efficient in the Middle Corridor trade route. He emphasized the importance of reducing transaction costs and eliminating bottlenecks to remain competitive in service provision. “Once people get used to a cost-effective route, they are reluctant to go back to the old system,” he said.
Park’s comments highlight the need for Georgia to take proactive steps to maintain its economic gains. By focusing on efficiency and service delivery, the country can position itself to retain part of the business it attracted during this period.
**Context: The 58th Annual ADB Meeting**
The 58th Annual Meeting of the Asian Development Bank is being held in Milan from May 4 to 7. This year’s main theme is “Sharing Experience, Building Tomorrow.” The meeting brings together experts and policymakers to discuss global economic issues and share knowledge on development strategies.
In this context, Park’s warnings about Georgia’s economic uncertainties serve as a reminder of the importance of staying competitive and adaptable in an ever-changing global trade landscape.
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