Finance Minister: ‘Georgia’s economy is not competitive’
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Georgia’s Finance Minister has slammed the Georgia economy of not being competitive.
Minister Nodar Khaduri cited the lack of competitiveness within the Georgian economy as the biggest challenging currently facing the country.
In an interview with local newspaper Kviris Palitra, Khaduri was quoted as saying Georgian products could not even afford to compete in the local market.
"Georgian products are uncompetitive on local as well as international markets. And the reason is [because of strict] finance accessibility, including credit resources. Furthermore, human resources are not very competitive too,” Khaduri said.
Over the past 20 years, many qualified people had lost their jobs as well as their qualifications, he said.
"… Banks have not faced the problem of liquidation but attracting long term finances is still a problem. They have short-term money and are eager to finance short-term investment projects not the long-term ones.”
Mulling over the competitiveness, Khaduri stressed in previous years, the country did not have a real goal and strategy with economy development.
He also believed international markets had strong influence on Georgia’s economy.
"Georgia’s main goal to become a full member of the European family means that our economy will be part of the European financial market. This means [access to] cheap financial resources. The private investment funds are good instruments to put the investments themselves, and others also believe investing in Georgia is profitable,” Khaduri said.
The Gross Domestic Product (GDP) in Georgia expanded 1.4% in the third quarter of 2013 over the same quarter of the previous year. The GDP annual growth rate in Georgia was reported by the National Statistics Office of Georgia.
From 2006 until 2013, Georgia’s GDP annual growth rate averaged 4.2% - reaching an all-time high of 12.3% in December 2007 and a record low of -9.0% in June 2009.
Georgia's most important sectors of the economy are agriculture, mining (manganese and copper) and manufacturing. GDP per capita is $3339 USD by 2013.
Georgia’s gross domestic product (GDP) grew by 7.1% in February 2014, as the country witnessed a 2.2% rise in the same period last year, according to official preliminary data.
Former Georgian minister of finance Nodar Khaduri, who was the first to hold the position under the current Georgian Dream leadership back in 2012, has passed away at age 49.