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Investment prognosis exaggerated

By Messenger Staff
Thursday, September 15
The government expects around USD 1 bln of FDI for 2011. Altogether, for the first two quarters, Georgia received USD 377 mln and it is highly unlikely that the country will receive more than USD 600 over the last two quarters of the year. As some analysts argue, today Georgia’s investment image has been blackened by strained relations with Russia. A further problem is believed to be the prevalence of informal practices that allow investors to do successful business in the country only with the support of certain state structures or influential political figures. The failures of the court system are also seen as a significant negative factor deterring investment in Georgia.