Per capita income in Georgia to remain moderate
Baku, Azerbaijan, October 16
By Tamilla Mammadova – Trend:
The level of per capita income in Georgia will remain moderate in the international context (less than $ 5,000 until 2022), Trend reports citing S&P Global Ratings.
This is primarily due to the fact that the Georgian economy is developing from a low initial base, as well as to the fact that goods with low added value prevail in the export structure.
Thus, the level of agricultural efficiency, in which a significant part of the country's population is employed, remains relatively low, which negatively affects the per capita GDP indicator, which, in turn, still negatively affects the level of sovereign ratings of Georgia.
“We believe that the institutional system of Georgia is one of the strongest in the region and has a number of precedents for the transfer of power and the current system of checks and balances between different branches of government. In addition, we highlight the operational independence of the National Bank of Georgia. In our opinion, these factors will not undergo significant changes during the four-year forecasting period,” notes the company.
According to the company, the reforms carried out by the Government of Georgia will cause additional economic growth, especially in the long term.
Current measures taken by the government include developing infrastructure and prioritizing investment projects; improving the business environment, including the introduction of a new system of public-private partnerships, deposit insurance, land and pension reforms; tax reform aimed at simplifying taxation and returning value added tax funds; and educational reforms.