The recent report of International Monetary Fund on World Economic Outlook for October of 2013 nearly halved the economic growth forecast for Georgia from 4% and 6% predicted in June and January of 2013 to 2.5%. The IMF also predicted 1.7% increase of unemployment rate in Georgia this year. Georgian government questions the IMF data and asks for revision.

he third Turkish air-company Atlasjet started flights in October from Tbilisi International Airport to Istanbul, challenging competitors with its cheapest prices at the moment but the question is whether or not the company is capable and willing to hold prices down in a long-term prospect.
Having watched Georgian market for a year, Atlasjet, the number one private Turkish-based company, decided to start flights from Tbilisi International Airport to Ataturk Airport in Istanbul, one of the major transit airports for the passengers flying to and from Georgia the globe over.

Malfunctioning of the Procedural Code of Georgia foster discrimination of businessmen and encumber the much touted process of restoration of investors’ rights in spite of declared political will of Georgian Government to reinstate justice in the country. And Georgian investors constitute the most vulnerable group, suffering from the inadequate legislation that mandates Prosecutors’ Office to act at its own discretion and settle things in favor of foreign investors. However, discrimination of any investor sends negative signals about the investment climate of the country.

Vintage 2013 is reaching its end and all involved sides - vine-growers, wine companies and the state - have already acknowledged in one voice that, unlike previous years, the vintage was successful, well-organized and free of the state interference.

Notwithstanding economic slowdown, the Georgian banking sector witnessed over GEL 100 million growth of profit in the first two quarters this year. Some sector pundits fear that instead of funding economy properly, banks pump money from it and tend towards a sort of a self-sufficient vicious system working only for the sake of its own profit.

The much expected and touted Co-Investment Fund comprising USD six billion of seed capital took off officially on 30 September 2013. The fund will be co-financing large-scale investment projects that require at least five million USD worth investments, while its participation range will vary from 25% to 75%. Investors will not be involved in the management of the fund prioritizing agriculture, logistics, real estate, energy and tourism.

The tax and customs codes integrated into a single one four years ago will be separated again in order to make things more transparent and customs clearance procedures clearer to business.
The initiative came from Minister of Finances Nodar Khaduri early this month. A working group is already created at Ministry of Finances of Georgia that will be coordinating the process. According to Khaduri, two key factors prompt the changes.

Eurasian Union, a scare-structure endangering the Georgian west-oriented political vector, may be fairly beneficial from economic points of view if used properly. “I am observing and scrutinizing the Eurasian Union. We have no definite position at the moment but if we find it interesting for the strategy of our country, why not?” Bidzina Ivanishvili, Prime Minister of Georgia, stated during his meeting with media early last month and opened a Pandora’s box of rumors and speculations.

Leading Georgian hypermarket network Goodwill and its affiliated production company Marshe continue operation in a rehabilitation regime starting this October due to insolvency problems. The management ascribes the problems partly to the state racket exercised by the pervious authorities on business and believes they will escape bankruptcy and retain market leader’s position after the business climate has become benevolent as the current administration released business from the state pressure.