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Monetary Fund Names 3 Key Challenges For Georgia

International Monetary Fund (IMF) has named 3 key challenges for Georgia. Small exports basis is number one problem for Georgia, Tao Zhang, deputy managing director for IMF, said.

“Traditional agriculture and the existing industries such as steel factory will not suffice to boost the country’s exports in quickly-changing global economies. New sectors are being developed, especially tourism and transport. However, you compete with such countries that strive for these goals”, he said. The recent free trade agreement may assist Georgia in diversification of new markets and economy, Tao Zhang added.

It is also important to mobilize domestic resources to incentivize investments for balancing economic growth, he pointed out.

Labor market is another challenge with a high level of unemployment and incomplete employment, Zhang noted.

‘”Almost a half part of the country population is employed in agriculture sector, while a major number of people remain still unemployed”, Zhang said.

A lack of appropriate skills of labor market is the third challenge, Zhang said.

“At global level technologies are being developed and countries are trying to transform their economies. This issue is relevant in Georgia and you should continue developing an appropriate education system”, Tao Zhang suggests.