S&P: Slowdown of Georgia’s economic growth connected with banks’ conservative policies

According to the influential Standard & Poor's international rating agency, aside from the political uncertainty, reducing the economic growth-rate in Georgia is associated with the fairly conservative policy of commercial banks.

According to a report by the agency for Eastern Europe and Central Asia, the steady and strong growth of the economy requires structural reforms. As for Georgia, the agency stressed that business in this country cannot understand the strategy of the government, as well as the changes made to the Labour Code and the Law on Competition.

According to the agency, the political tension in Georgia will have an impact on the pace of economic growth until the second half of 2013. Most infrastructure projects in Georgia, which have been suspended, will be resumed in the second half of the year. However, significant growth observed for the last three years will not be noticeable in this process, Standard & Poor's said. (Trend)