Import increase creates serious threats
By Messenger Staff
Friday, January 9In the period January-November 2008 Georgia’s foreign trade turnover was more than USD 7 billion. Of this amount export made up barely USD 1.5 billion, the rest of the figure was import. The negative trade balance is therefore over USD 4 billion.
Today Georgia has a negative trade balance with 104 partner countries, and economic experts observe that the import volume is permanently increasing. This process puts pressure on the local companies which produce products for domestic consumption, decreasing job places and eventually devaluing the local currency.
The Centre for Economic Policy recommends that the state identifies and supports segments of the economy where export production could be manufactured, so that it could both increase exports and substitute imports. It also recommends searching for companies around the world which might be interested in producing goods in Georgia. These companies should receive certain tax benefits and advantages for exporting Georgian products abroad.