Crisis will affect investments

The International Monetary Fund (IMF) has released data which shows that the world economy is expected to contract over the coming 2-3 years.

In particular the crisis will influence developing countries because investments in them will slow. The IMF prognosis shows that foreign investments will decrease by 31%, approximately USD 180 billion. In 2009, for the first time since 1982, world trade figures will decrease as well.

Georgia began suffering an investment deficit as soon as the Russian aggression began in August. The world crisis has added extra pressure. The NBG has estimated that in 2009 direct investment in Georgia will be less that USD 1 billion, however in the second half of the year the situation may improve.

Of course Georgia’s economy depends very much on the economies of the countries which support Georgia and try to stabilize the situation here. So unless the crisis is successfully overcome in these developed countries the situation will not improve in other places.