Georgia’s hopes for 2010

Recently the Georgian Government has been offering its vision of the future economic development of the country. It suggests that despite downturn in 2009 recovery will occur next year. Independent analysts challenge this optimism however, suggesting there will be a further deep recession in Georgia.

Officials suggest that in 2009 there will be decreases in export-import turnover and money transfers. The direct foreign investment figure is already around 40 percent lower than last year. Analysts suggest that the health of the economy will largely depend on donor assistance.

Currently Georgia’s level of inward investment is around that of 2004. There are also considerable shortcomings in the collection of tax revenues and the state is taking more internal and external loans. However officials are still optimistic. The Government thinks that in 2010 export production and direct foreign investment will increase. It also expects a GDP increase, a slowing down of inflation and improvements in other indicators.