ECONOMY

Dr. Nodar KHADURI

---

Nodar Khaduri, Associated Professor, Department of Economics and Business, Ivane Javakhishvili Tbilisi State University (Tbilisi, Georgia)

---

Introduction

In 2005, the country’s economic development was relatively stable, without sharp fluctuations. Among the main factors determining this development was the post-revolutionary situation in the republic, and also natural disasters (floods and landslides), which caused great damage to the economy in the spring of 2005. Another unfortunate circumstance was the country’s failure to resolve its energy problems, which kept erupting throughout the year.

In the first few years of independence, the decline in production reached, so to speak, record figures. For example, real GDP in 1994 was almost three-quarters lower than in 1990 (which in itself was not a very good year for the economy of Soviet Georgia). But in 1994 the country managed to halt this decline, and in 1996-1997, to achieve fairly good results: real economic growth in these two years added up to almost 25%.

Despite the fact that during these years Georgia was in the forefront of economic reform in the CIS countries, in the second half of 1998 it plunged into a fiscal crisis. The state could not meet its obligations, which resulted in huge wage and pension arrears, and was often unable to discharge its debts to economic agents that provided it with goods and services. Unfortunately, some of the consequences of this crisis have not been overcome to date.

Apart from objective factors, the country’s economy was adversely affected by subjective factors as………….

---

Please fill in the subscription form to obtain the full text.