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Experts on Georgian economy

By Messenger Staff
Thursday, June 25
Different experts have been expressing their concern about the country’s current economic situation. Foreign direct investment in the country has dramatically slowed. In the first three months of 2009 only USD 124.7 million entered the country in this way. Giorgi Gongadze, an economist analyst, thinks that if this tendency continues Georgia won’t receive even the USD 800 million out of 1.1 billion the state expects. Political analyst Soso Tsiskarishvili is even more pessimistic, stating that the situation has become very serious since the Russian invasion and bombing of Georgian territories. The slowdown in investment hampers the development of the Georgian economy as a whole.

Economist Shota Gvenetadze from the Movement for Fair Georgia suggests that the ruling administration cannot handle the economic crisis the country is in. He thinks that instead of the projected 1.5% contraction Georgia’s economy will decline by 7% minimum. He suggests that the administration should adjust the budget to realities and openly declare how bad a situation the country is in. Gvenetadze predicts that in September-October the country will face more problems paying salaries and pensions if this is not done.

State officials and the Prime Minister in particular are more optimistic, stating that the Government is controlling the situation and the country has enough reserves to maintain the country’s economy.