Georgian GDP issues

When they drew up this year’s budget the Georgian authorities said that the country’s GDP would increase by 10% in 2009 and reach around GEL 23.7 billion. Now the year is almost over this projection has been adjusted and now states that GDP will decrease by 4% and nominal GDP will be around GEL 18.3 billion. So it is obvious that in 2009 the Georgian economy has shrunk.

The prognosis for 2010 is more encouraging: GDP will increase by 2% to over GEL 19 billion. But such a result can be achieved only if the Georgian leadership conducts a very balanced and well designed fiscal policy.