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How the economy should grow

By Messenger Staff
Monday, November 16
It is projected that Georgia’s economy will grow by 2% in 2010. Thee major factors should drive this growth - a decrease of bank interest rates, which will facilitate consumer activity, an increase in exports achieved by facilitating export-producing enterprises and more foreign direct investment coming into the country. The Georgian authorities suggest that in 2010 the country will receive around USD 1 billion in FDI.

Of course if all these projections prove to be correct, or even underestimates, the Georgian economy will improve still further. Independent economic analysts however are pretty sceptical about the optimistic approach of state officials. One must take into account that in 2009 the country will contract around 4-5%, so this gap should be filled in 2010 before 2% growth can be achieved. Demur Giorkhelidze thinks that this is not a realistic scenario, but if the Government puts correct and efficient plans into action such a result is achievable.