Georgia is in a precarious position due to its current account deficit and dependence on Western capital, Bloomberg notes.
The recently adopted law on “foreign agents” in Georgia has shaken investor sentiment. The political turmoil he stirred up in the country spread to the London stock market. Bloomberg reported this.
The passage of the law affected UK-listed TBC Bank Group PLC (LON:TBCG), Georgia Capital PLC (LON:CGEO) and Bank of Georgia Group PLC (LON:BGEO) which fell by 20%.
The event erased last year’s gains in stocks, which hit a record high since early 2024 thanks to Georgia’s strong macroeconomic outlook.
Investor sentiment was shaken by the bill’s progress. According to economists, Georgia is in a very precarious position due to its large current account deficit and dependence on Western capital.
As you know, on May 14, the Georgian parliament finally adopted a bill on the transparency of foreign influence, which led to mass protests. In addition, part of the opposition in the Georgian parliament announced the transition to boycott mode after the adoption of the law on “foreign agents.”
Georgia President vetoes “foreign agents” law
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.