The year 2014 – a turning point to Georgian economy
16 January, 2014
The year 2014 – a turning point to Georgian economy
Georgian government believes the economic growth target of 5% is quite achievable this year. Almost 8% growth in November 2013 surely feeds the hope. Economic analysts and researchers think this year will be difficult but can be a turning point to growth and development if government undertakes a wise economic policy. Otherwise the economy is destined for complete failure.
By preliminary data of the official statistical body, GDP grew by 7.8% in November 2013 and average growth in eleven months
accrues to 2.6%, close to the targeted 2.5% forecast of International Monetary Fund and government. Actually the government hoped to attain 6% growth in 2013 but cohabitation and political uncertainty affected the year to such an extent that government expectation settled on less than 2.5% of growth. Although as Finance Minister Nodar Khaduri admitted, the structure of Georgian economy is changing: instead of the previously established “stick policy”, the freedom of business should become a drive force for the economic growth.
Analysts and researchers think that 5% GDP growth is possible thanks to the ongoing depreciation of Georgian national currency that devaluated by 5.4% in last two months and boosted inflation after two-year deflation [affecting Georgian economy for two years as a result of artificial strengthening of national currency by ex-power]. But if government does not improve the business climate as promised only devaluation of the currency cannot insure the growth. No efforts were applied to assist small and medium business in 2013. Approval of anti-trust law and package of changes to the securities law lingered starting past January up to date. This drag-out prompts some experts to suspect that authority still holds a selective attitude toward businesses and lobbies certain big business groups.
On the other hand, the restoration of infringed property rights is crucial, researchers say. As soon as the power changed in 2012, the Prosecutors’ Office was simply flooded by lawsuits demanding restoration of property and human rights. To facilitate the problem solution, authority decided to set up the said Commission. However, the issue lingered during the entire year and was postponed by an undefined period. No alternative remedies were suggested frustrating the private sector. In addition, as the New Year started, the government initiated a bill to ease access to tax secrecy [bypassing the court and tax payer’s consent] that made private sector and analysts indignant.
Ditrikh Muller, a co-founder of Georgian Investment Group+, believes that if government does not come up with a timely solution to the said issues, which are crucial for investments and economy, no growth would be in the prospect.
“Anti-trust law, securities law, protection of property rights and tax secrecy - all are crucial for business and investors. Investors should feel safe that once they invest in Georgia their rights will be protected, the market competition will be fair and their commercial secrecy untouched, and that the acquisition and sale of stocks will be equally easy and safe. Otherwise no reputable investors will step in here,” Muller said.
Soso Archvadze, an economic analyst, is optimistic toward 2014. He hopes that re-opening of Russian market will have a positive impact on income of Georgian population. Also he expects higher inflation rate this year and deflation process to be ended up.
According to him, political situation will be more stable and ensure clear business environment and freedom to entrepreneurs. Archvadze hopes the anti-trust law will become effective in this coming spring finally as government has just trumpeted. He also sees good signals that agriculture and tourism will get an impetus. “If global economic trends will be also clement 5-6% growth of GDP is quite possible,” Archvazde said.

Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30