Anticipating further crisis

Economic analysts expect a further deterioration of the situation in the country in autumn. The consequences of the Russian aggression, the world economic crisis and several other reasons are cited to support this view. The unwillingness of investors to invest in the country and a bad harvest which could raise the price of food are among the factors which will slow down the consumer spending process, suggests economic analyst and former President of the National Bank Davit Iakobidze.

Iakobidze suggests however that if the National Bank carries out the correct policy it should not be difficult to maintain the GEL rate as financial institutions, the EU and USA have expressed serious support to the country. The country has enough reserves to keep the GEL rate stable, but a professional approach and a responsible policy should be implemented in order to do this.