Economic situation in the country
By Messenger Staff
Friday, December 30Georgia’s National Bank and Department of Statistics have declared that macroeconomic indicators in the country are improving. This does not appear to be helping the financial state of the population however.
The biggest challenge for the country in 2011 was inflation which was 15% at the beginning of the year. The state did manage to slow down the rate of inflation later though. But the problem of unemployment remains the number one issue for the majority of the population.
Independent analysts claim that unemployment figures are much higher in reality than those stated by official data. Around 70% of Georgia’s economy is based on the economy of other countries. As there was no complete and consistent plan for the economic development of the country its economy has developed to be unstable and fragmented. The economic policy of the country is based on emotional factors and not results-oriented, critics claim. Much money is spent in the wrong directions. They also mention that the Georgian economy has paradoxical features as well. They cite the example of calculating citizens’ waste removal bills in proportion to the amount of their electricity bills, which is illogical. It is also ironic that one of the country’s biggest exports is the re-export of cars which are not produced in Georgia.