EBRD names major risks to Georgia's economy
Georgia, Tbilisi, Nov. 20 / Trend N.Kirtzkhalia /
The European Bank for Reconstruction and Development (EBRD) sees risks for the development of the Georgian economy in attracting foreign direct investment in the uncertain quantities.
Based on the EBRD report, an essential element of the Georgian government's economic strategy is to attract foreign investment, but their extent is still unknown.
The increase in issuance of loans by commercial banks should lead to compensate for the reduction of fiscal incentives in the current and future years, although the financial sector is at risk because of the high rate of dollarization and the volume of overdue loans, the report says.
EBRD believes economic growth in Georgia will hit 5.5 percent in 2010 and 4 percent in 2011.