GDP Dynamics of Georgia and its Neighboring Countries in 2013-2019 in the Regional Context and Causes of Crisis

Abstract

The article analyzes Georgia's national GDP, the GDP of Georgia’s regions, the GDP of the Russian Federation, the GDP of the Russian Federation regions bordering Georgia, the GDP of the Republic of Turkey and the respective GDP per capita to address the causes of financial crises in the region.  While the Russian Federation is a leader in the region in terms of  territory, population, and GDP, the article notes the fact that the sanctions imposed by the Russian Federation after the annexation and occupation of the territory of Ukraine in 2014 and low oil prices in 2014-2017 reduced the opportunities for economic development of the Russian Federation. This was reflected in the 2016 decline in gross domestic product by one trillion dollars, or 44.3 percent.

Lower oil prices have become the cause of a decline in GDP in the Republic of Azerbaijan. As for the decline in GDP in the Republic of Armenia, it was mainly due to the high dependence of this republic on the economy of the Russian Federation. As for the Republic of Turkey and Georgia, the main problems, along with external factors, were the incompetent decisions of governments that took place during the research period. It should also be noted that in the regions of Georgia there was a decrease in GDP, but it was not as sharp as in the Russian republics that border Georgia.