Georgia’s economy: optimism and pessimism

Georgian Government officials evaluating 2009 have stated that however complicated it was its results were quite acceptable. Prime Minister Gilauri has said that the current economic crisis is the worst for the last sixty or seventy years but Georgia has managed to survive it.

Gilauri said that in 2010 the country will achieve 2% economic growth and he expects positive results already in the first quarter. Some economic analysts however are rather sceptical about this, thinking that the economic decline will continue this year and only bottom out nearer the end of it.

Emzar Jgerenaia thinks that the economy will bottom out this summer, but fellow analyst Demur Giorkhelidze thinks that 2% growth in 2010 will not compensate for the 2009 losses. Nodar Khaduri, analyst, thinks that 2009 was quite dramatic for Georgia’s economy. Production shrank and unemployment increased, and there are not many grounds for optimism in 2010. Maybe in 2010 the decline will halt as well as the increase of unemployment, hopes Khaduri.