Expert Opinion cdr

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EXPERT OPINION
DAVIT SHATAKISHVILI
POST-CRISIS ECONOMY OF THE SOUTH CAUCASUS COUNTRIES
AND THEIR FUTURE PERSPECTIVES
200

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EXPERT OPINION
DAVIT SHATAKISHVILI
POST-CRISIS ECONOMY OF THE SOUTH CAUCASUS COUNTRIES 
AND THEIR FUTURE PERSPECTIVES 
 
2023
ÓÀØÀÒÈÅÄËÏÓ ÓÔÒÀÔÄÂÉÉÓÀ ÃÀ ÓÀÄÒÈÀÛÏÒÉÓÏ ÖÒÈÉÄÒÈÏÁÀÈÀ ÊÅËÄÅÉÓ ×ÏÍÃÉ
GEORGIAN FOUNDATION FOR STRATEGIC AND INTERNATIONAL STUDIES
200

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The publication is made possible with the support of 
the US Embassy in Georgia. The views expressed in the 
publication are the sole responsibility of the author and 
do not in any way represent the views of the Embassy.
Technical Editor: 
Artem Melik-Nubarov
All rights reserved and belong to Georgian Foundation for Strategic and International 
Studies. No part of this publication may be reproduced in any form, including electronic 
and mechanical, without the prior written permission of the publisher. The opinions and 
conclusions expressed are those of the author/s and do not necessarily reflect the views 
of the Georgian Foundation for Strategic and International Studies.
Copyright © 2023 Georgian Foundation for Strategic and International Studies
ISSN 1512-4835
ISBN 978-9941-8-5362-3

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3
Introduction
The last three years have been difficult for the South Caucasus countries. 
Along with the economic shocks caused by the global pandemic, in the 
second half of 2020, these were accompanied by the 45-day Nagorno-
Karabakh War between Armenia and Azerbaijan, as well as political 
instability following the armed conflict, which directly affected the regional 
economy. The situation worsened again following the Russian invasion of 
Ukraine on February 24, 2022, which in turn led to new global economic 
challenges which naturally encompassed the South Caucasus nations. 
Political and military stability in the region are among the key prerequisites 
for its economic development. Regional peace opens many new prospects 
for Georgia, Armenia and Azerbaijan, including trade expansion and 
energy relations with European countries. The Russian aggression in 
Ukraine has made abundantly clear the importance and potential of the 
Black Sea and South Caucasus region. After the Russia-Ukraine war, along 
with the redistribution of power in the region, the formation of new trade-
economic relations and supply chains will take place, in which the South 
Caucasus will play a crucial role. Cooperation between the countries of the 
region regarding economic, infrastructural, transport, trade, and financial 
issues is becoming even more significant. For this reason, we thought it 
interesting to discuss the economic environment of the South Caucasus 
countries following on from these hard three years. We look into what 
macroeconomic indicators we have at this time and how future cooperation 
can be encouraged to maintain common regional social-economic well-
being.