Georgia’s economic growth prospects
By Messenger Staff
Tuesday, January 11In 2010 Georgia’s economic growth was around 6%. It should be noted however, that this growth is in comparison with the situation in 2009, when Georgia did not experience growth but rather a decline in economic development by 4%. Georgia's economic growth hit a record level in 2007 and during the first half of 2008 the figures were quite solid, but as a result of the Russian invasion and the beginning of the economic crisis, 2008 yielded only 2% growth. In 2009-2010 Georgia started receiving aid from the west which helped to maintain economic growth against a background of diminishing foreign direct investment. Today the inflow of aid is decreased dramatically and investments are lacking. Therefore some independent analysts are suggesting that Georgia's economic growth in 2011 will be negligible. Meanwhile officials are suggesting that the new economic policy, together with the new tax code and other initiatives such as the promotion of tourism, etc. will boost the country's economic growth. Independent economic analysts however have more modest expectations, highlighting the shortcomings of the state economic policy.