Economic crisis in Georgia

Some economic analysts expect a new wave of crisis to strike Georgia in spring. So far crisis has touched many segments of industry, notably construction, car import and insurance. Some other businesses are under the threat.

Other experts however think that the potential for a spring crisis is exaggerated. Soso Tsiskarishvili thinks that spring will be difficult from the political point of view rather than the economic. He assumes that the administration is seeking to maintain its position by spreading extra PR about a coming economic crisis. He predicts however that autumn will be far more difficult than spring and also recommends that people be cautious about their future prospects.

Tsiskarishvili also warns that if the GEL rate is devalued the prices of imported products will increase quickly. This will damage small businesses and essential domestic purchases will also become more costly.