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Why has the economy frozen?

By Messenger Staff
Wednesday, July 10
GDP growth in Georgia in May of this year was 0% which the former United National Movement (UNM) government attributes to the new government and its economic policies. However, the Georgian Dream coalition claims that it was the UNM that has damaged business and that they have inherited a bad economy.

The UNM says that the Georgian Dreams decision to suspend infrastructural projects and tenders launched during their governance hinder the inflow of money. However, according to the Minister of Regional Development and Infrastructure, Davit Narmania, 10% more budgetary resources have been spent on rehabilitation of the infrastructure during the first six months of 2013 compared to the same period last year.

Minister of Finance, Nodar Khaduri, said the economic growth in 2012 had been achieved by the rude interference of the former government. He said money was spent on building a new parliament, public hall, Batumi Tower and so on. The state forced businessmen to engage in losing projects, while according to the Finance Minister, business should be free from pressure. He said only a free and competitive business environment can ensure economic development.