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Economy: stable rating in shaky position2009-08-28 10:20
Today Georgia's new Minister of Economy Zurab Pololikashvili will give his first speech to the Cabinet. The government hopes the minister will help to resume inflow of investments to the country. Experts doubt that. However, it is rather difficult to have a definite idea of the country's economy from reports of international structures, expert statements and the media.
Over the recent time reports on the state of Georgian economy have been published by several international organizations. According to the US media Georgia ranks 33 in the list of unstable countries. The Asian Development Bank report (ADB) claims Georgian economy's constant dependence on money transfers from abroad. The highest unemployment rate in post Soviet space is registered. In the meantime Fitch Ratings agency improved its forecast for Georgia. The ratings have been removed from Rating Watch Negative, and the Outlooks on the Long-term IDRs are now Stable, the agency's report goes.
"The inflow of massive international financial assistance is supporting Georgia's economy and creditworthiness following the war with Russia in August 2008 and the global financial crisis, while the risk of a third shock of major domestic political instability has receded as mass opposition demonstrations have dissipated", - Edward Parker, Head of Emerging Europe in Fitch's Sovereigns team commented.
This is what Georgian PM Nika Gilauri stated in this connection, as Business Georgia reports: "One point upgrade of the credit rating is very important for Georgia's economy and local business people". According to him business people will eventually have a chance to get cheap loans and attract foreign investments. "According to the information we have no other country has had its credit rating upgraded", - the PM remarked. Before that he expressed hope that the new Minister of Economy Zurab Pololikishvili will help to attract new investments to the country.
In his first speech the Minister of Economy highlighted he would work with his team. Four out of five ex deputies have already filed resignation. How will the staff shifts contribute to stabilization of economy? However, if the government announces the end of the crisis, common and business people haven't noticed that yet. Decline in production and low spending capacity are mainly discussed.