Georgia faces growing economic risks as neighbors accelerate diversification, analyst warns

Georgia’s neighbors are intensifying efforts to diversify their regional routes and partnerships, a development that will increasingly create economic challenges for Tbilisi, Giorgi Melashvili, founder of the European-Georgian Institute, said on Friday.

According to Melashvili, it was expected that the southern branch of the Middle Corridor - the route running through Armenia - would become more active.

“It was foreseeable that the southern extension of the Middle Corridor passing through Armenia would gain momentum, especially considering that the Georgian government has done everything to damage relations first with the West, and now is doing the same with Azerbaijan and Armenia,” he noted.

Melashvili argued that neighboring states are deliberately seeking to diversify their transit and economic options. “The faster this process accelerates, the more economic problems Georgia will face,” he warned.

He further criticized the ruling Georgian Dream party, saying its recent policy course was “fully oriented toward Euro-isolation,” aimed at avoiding irritation of Russia. “This ultimately translates into capitulation, while Russia has no interest in long-term peace in the Caucasus,” Melashvili added.