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Prognosis on economic crisis

By Messenger Staff
Monday, June 15
Georgia was afflicted by an economic crisis after the Russian invasion last August. The economy grew only 2% in 2008 instead of the planned 12%, and the prognosis for 2009 is a 1.5% contraction.

Some analysts say that in addition to the world crisis and the Russian invasion political instability and incorrect economy policy have created the crisis in Georgia. Revaz Sakevarishvili suggests that if the contraction is not more than 1.5% this would not be the worst option of the country because the situation could be develop into worse direction. He says there are some difficulties in spheres of the Georgian economy which have recently been very successful, such as construction, industry, trade and banking.

The administration has accused the opposition of making an already difficult situation in Georgia’s economy worse, however systemic shortcomings in economic development are quoted as the source of current problems by analyst Gia Khukhshvili. There is a deficit of budget revenues and export/import turnover has decreased 30%. The Government is however trying to develop an anti-crisis strategy within an economic stimulus package and its details will be revealed soon.