New wave of job cuts

The economic crisis has already damaged Georgia’s job market. However experts predict a further loss of jobs in the country in the first half of 2009.

Experts think that the development and construction industry will still be in crisis. Only companies which receive state assistance will be in a better condition.

It is predicted that certain businesses will be in the utmost difficulties, such as advertising, courier services, minicabs, electrical and home appliances, luxury goods and accessories. Shops and systems for selling everyday products, cheap alcohol and cigarettes and pharmaceutical goods are more likely to survive, because demand for these products will not dramatically decrease. However, unfortunately unemployment will increase.

Newly-appointed PM Nika Gilauri has promised that the Government will do its best to increase jobs, develop infrastructure, issue cheap credits and attempt to attract foreign capital. USD 520 million is envisaged for infrastructure spending and cheap credit was issued last year as well but it is very difficult to attract foreign capital. Overall the situation is not very cheering.