IMF predicts gowth of unemployment in Georgia
The Fund’s main recommendation is to solve the problem of political instability in order to regain the confidence of investors.
The International Monetary Fund [IMF] predicts growth of unemployment in Georgia. According to the influential organization, the unemployment rate will grow by 1.7 % and will reach 16.7 %.
The Fund suggests an increase in unemployment to 17.3 % for next year that is the worst result in the CIS space after Armenia.
In addition, the IMF deteriorated Georgia’s economic growth forecast for the second time. The organization suggests a 6 % growth in the beginning of the year, in June this rate fell to 4 % and at present it makes 2.5%.
The Fund’s analysts say that the slowdown in economic growth is due to reduced private investments and credits as well as the economical expenses of the budget funds. The main recommendation is to solve the problem of political instability in order to regain investors’ confidence.
Note: The government has already admitted that by the end of the year it will be impossible to reach a 6 % growth. Minister of Economy predicts a 3% economic growth considering the 2013 results.
Adapted from COMMERSANT
More on the topic
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