Georgian business “optimistic” says survey

On December 18 the International Finance Corporation (IFC) presented to the Government of Georgia the results of its “Business Optimism Study,” designed to make it easier to identify which areas of the private sector have been most affected by the August events.

According to the entrepreneurs surveyed, the August events have created a 3.3% decrease in employees. 55% of entrepreneurs think that their revenues will not change in the next 6 months, while 33% believe that revenues will increase. 66% of firms expressed high or medium optimism about the short term business environment in Georgia, while 75% expressed optimism about the country’s business environment medium term. On average each firm anticipated 16% revenue growth, but in reality they experienced a 23% loss of revenue.

“We believe that private sector development remains the most effective way to create jobs and ensure economic growth in Georgia,” IFC Georgia Business Enabling Environment Project Manager Irina Kokaia said. “Therefore, especially in this challenging time, the project will continue to help Government agencies identify the key problematic areas for business activity in the country,” she added.

IFC surveyed 400 enterprises in Tbilisi and six in other Georgian cities. IFC is a member of the World Bank Group which creates opportunity for people to escape poverty and improve their lives.