Difficult year continues

Economists in Georgia argue about whether the present crisis has passed its peak and the country is heading towards some more positive developments or a second wave of crisis will strike which could be even worse.

Internationally, in Japan and USA, very modest signs of a certain recovery of the economy have already been detected. If this is so things will improve worldwide, however some time will pass before this comes to pass and reaches Georgia.

Economic analyst Davit Narmania thinks that Georgia has resisted the first blow and has gone through the worst consequences of it but predicts that in late autumn and winter 2009 it will receive yet another which will be even more dramatic. Narmania thinks that the Georgian Government issuing treasury liabilities proves that there are serious problems in the Georgian budget. These will be heavy burden for the state because as soon as the loans are taken on the state has to pay interest on them as well.

Fellow analyst Gia Kukhashvili predicts even more serious setbacks. He draws a very grave picture of a hungry country. One can only hope that the situation will not be that bad but the country should be prepared for any possible complications.