On 5 November, Armenia reported 2,413 new Covid-19 cases, bringing the total number to 99,563 and 1,476 reported deaths from the virus. Azerbaijan reported 1,364 new cases and 14 deaths, bringing the total tally to  60,873 cases and 794 deaths. Georgia reported 5, 2401 new cases and 20 deaths. This brings the total tally to 49,218 cases and 401 deaths. 

The steady rise of Covid-19 cases in the South Caucasus countries has prompted state budget concerns for the year 2021. Armenia’s Deputy Prime Minister Mahe Grigoryan said that the upcoming 2021 would be a tense year for everyone in Armenia. He said that the number one problem for the Armenian government would be to raise productivity in order to be able to meet the necessary costs.

“There are the consequences of the virus, to which the current situation has been added, but I am confident that we will be able to find solutions and ensure the necessary stability and financial balance that will allow us to continue maintaining stability, ensuring an inflow of investments and making productive expenses, as well as achieving our goals and overcoming existing challenges,” Grigoryan said. 

Armenia’s Minister of Economy Tigran Khachatryan stressed that the situation in the economy is extraordinary, which is due to two external factors - coronavirus and martial law. This leads to new problems, but the authorities intend to intensify efforts to compensate for these difficulties. He noted that the emphasis will be placed on the competitiveness and productivity of industry, increasing the activity of small- and medium-sized enterprises (SME’s).

Georgia’s Prime Minister Giorgi Gakharia stated that the post-election opposition rallies in the streets would accelerate the process of reaching the peak of the pandemic. He stressed the importance of maximum mobilisation of all relevant agencies to take the necessary measures, including making sure the targeted restrictions become more effective. The country’s Vice-Parliament Speaker Maia Tskitishvili hinted that new, local restrictions may include the prohibition of movement at late hours, stopping of public transport in several locations, the closure of malls and other measures. 

The country’s Finance Minister Ivane Matchavariani stated that the Georgian government reached an agreement with the International Monetary Fund (IMF) on the parameters of the 2021 budget. “The budget structure will be developed in two directions: one will be to alleviate sectors and people affected by Covid-19, while the other will be fiscal and economic stimulus,” he added. According to the draft of the state budget for 2021, state budget expenses will increase by 1.14 billion GEL and will amount to 17.07 billion GEL. The expenses related to Covid-19 were not reflected in the state budget draft, but they will be considered in the final version of the budget.