Economic growth depends on investments

Some economic analysts think that unless Georgia receives sufficient foreign direct investment it cannot achieve the promised economic growth. However investments have been very slow to enter the country due to the pre-election instability and, primarily, the continual Russian threats of further aggression. These threats are indeed designed to undermine Georgia’s economic stability not by frightening Georgians but frightening those who might invest here.

Analyst Solomon Pavliashvili thinks that another factor hindering investment in Georgia is the inconsistency of the Georgian Government. It will introduce a new programme, for instance the cheap credit programme, but not continue it. The export-support programme it instituted is another which has now fallen by the wayside. “Such moves start as PR exercises and then stop,” Pavliashvili has told the Akhali Taoba newspaper.