Georgia to overcome investment vacuum
Friday, October 3Georgia’s economy has for some time been greatly dependent on investments. The Russian aggression has scared many investors away. The assistance the country might receive will stabilize the risks but the priority of the national leadership is to undertake an urgent confidence building policy within the country.
In 2007 Georgia received more that USD 2 billion in foreign investment. In 2008 it expected to receive more than this, and up to June the country had indeed received about USD 1 billion. However the Russian invasion has halted this encouraging progress.
The Deputy Minister of Economic Development Vakhtang Lezhava states that most probably Georgia has lost around USD 200-300 million in possible investments. He is confident however that the country will lose no more, citing the support the country will receive from the West, and the United States in particular, as the grounds for this confidence.
A new company called Silk Road Trans Atlantic Alliance has recently been established in the USA. This will facilitate American investment support for Georgia. Mayor of Tbilisi Gigi Ugulava says that US business interest in Georgia is still pretty high and there are certain projects being undertaken which will be implemented with US capital.