Opposition analyst predicts deeper crisis

Opposition economic analyst Professor Nodar Khaduri highlights the fact that during the last revision of the state budget projected tax revenues were decreased by GEL 500 million. As projected tax revenue was initially set at GEL 4.7 billion, a decrease of 500 million is one of 10.6%. “This means the Government expects Georgia’s economy will contract by 10-11% and not the 1.5% the PM says it will,” states Khaduri.

Georgia’s foreign trade turnover is also decreasing. In the first 4 months of the year the total foreign trade turnover was USD 1.595 million, a 34.9% decrease compared with the same period last year. However the Government is less skeptical than the analyst and brings Georgia’s foreign aid loans into the equation. Georgia’s foreign loans currently are of more than USD 2.9 billion, a dramatic increase on last year’s figures.

Deputy Finance Minister Papuna Petriashvili thinks it is financially credible for foreign loans to equal around 60% of GDP. He says that 57% of The Netherlands’ GDP is made up of foreign loans. In Italy foreign loans are 110.7% of GDP, whereas in Georgia they equal 28%.