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Businessmen Gathering to Discuss Situation in Georgian Economy

21 Jun '10

Chief Advisor to Prime Minister of Georgia Vakhtang Lezhava and Chairman of the Supervisory Board of Free University Kakha Bendukidze met with businessmen on June 21 and, based on the current macroeconomic indicators, discussed the prospects and problems of Georgian economy.

Prime Minister's advisor made a presentation for the businessmen and gave detailed overview of the existing situation and various statistical data. According to him, compared to the previous year's period situation in private sector is much better and abrupt revival of certain areas is obvious (construction business, trade, banking). Although the government had different estimates, current reality shows that this year the economic growth rate will reach about 4-5%. During this year foreign debt has also increased but its orderly reduction is planned already from the next year. The government is making strong efforts to carry on the already started reforms and top priority remains to be attraction of as much investments as possible in the country and to this end the  enhancement of infrastructure, creation of favorable investment climate, liberal tax legislation. Intensive works on "Liberty Act" are going on in the Georgian Parliament to be presumably adopted next year which will significantly facilitate improvement of investment climate. At the meeting it was emphasized that economic situation is still quite instable in Europe and USA which inevitably impacts the Georgian economy.

Kakha Bendukidze shared his views with businessmen. As assessed by him, Government's top priority should be filling of budget deficit and significant steps have to be made to this end. Increase of some taxes as suggested by the new draft tax code will negatively impact the economy. As stated by Mr. Bendukidze, this year's increase of budgetary revenues is directly related with the economic growth pace but it is not enough and would be better if the government gradually reduces the expenses as well.

BAG President Giorgi Chirakadze summarized the meeting. He stated that the business is well aware of the existing situation and appreciates the government's steps towards economic growth and attraction of investments. Furthermore it is very important for the business to be part of the reform process which per se implies trust and solution of problems with joint efforts.