Challenges of economic activities of cities in the context of the covid-19 pandemic

Abstract

Since the beginning of 2020, the economic complications caused by the Coronavirus pandemic (COVID-19) have entered the active phase. The world economy is facing the unprecedented challenges - global demand and global supply have declined, unemployment has risen, and losses amount to tens of trillions of dollars. The total value of the fiscal and monetary measures taken by governments in response to the COVID-19 pandemic has reached one-tenth of the worlds gross domestic product (GDP). It is impossible to address the problems of the global economy caused by the COVID-19 pandemic without the concerted efforts of States. However, individual States are developing their own ways to overcome these problems. Investigating various sources and reviewing experience of different countries confirmed that in the context of the COVID-19 crisis, along with national governments, city administrations should also well have a role to play in financial support of small and medium-sized enterprises, as a particularly sensitive sector, mostly those enterprises that have more opportunities to expand their business. The main purpose of the authors was to identify the threats and economic opportunities that cities are facing in general and particularly in Georgia, in terms of neutralizing the consequences of the pandemic. According to conclusion derive from studies, cities have to employ their real capacity in order to remain functionally viable. This requires the new development strategies, enhancing work with investors, setting the realistic budget and the correct choice of priorities. © 2021 Bull. Georg. Natl. Acad. Sci