Construction boom in Georgia
By M. Alkhazashvili
(Translated by Diana Dundua)

The construction sector is one of the fastest growing in Georgia’s economy: in 2003 it accounted for five percent of GDP; in 2004 this figure rose to six percent; by 2006 it was seven percent.

Since 2005, investments in this sphere have increased by around 68 percent, from GEL 750 million to GEL 1.1 billion.

The number of people employed in construction has doubled since 2003, and according to the newspaper Ekonomikuri Palitra—construction workers have experienced significant salary increases: a worker paid GEL 300 in 2005 was paid GEL 450 in 2006, it says.

However, while the government praises this building boom as an indication of economic growth, independent analysts have suggested that it is moreover a sign that other fields constitute a high risk investment, so people prefer to invest in real estate.

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