Different trends in Georgian economy
By Messenger Staff
Friday, July 10According to official information there was zero inflation in Georgia in June. Economic analysts say this demonstrates that a recession has come. In January inflation was 4.4%, in February 2.1%, in March 1.6%, in April 1.8%.
The recession is further demonstrated by the fact that bank deposits have grown faster than loan issues, something which indicates that money is being saved for tomorrow rather than spent today. Banks make their profit by investing their money in business by issuing loans.
Of those loans given in 2009, the greatest share, 46.3%, financed trade operations. Loans issued to the industrial sector took an 18.6% share and construction 12.3%. Therefore over 78% of issued credits went to enterprises in those three areas, trade, industry and construction.
The tendency to keep deposits in foreign currencies is increasing. 76% of total deposits are in US dollars and 12% in Euros.