Home / Banking / Whether Unemployment will Increase due to the Devaluation of the Lari?

Whether Unemployment will Increase due to the Devaluation of the Lari?

Despite the positive expectations of the government, the national currency continues to depreciate. In expert circles believe that the business, very dependent on imports, would be forced to reduce administrative costs. It can also affect the salaries, in the worst case – could lead to the dismissal of employees.

Interviewed by CBW businessmen say that because of the crisis, companies plan to reduce administrative costs, but do not intend to lay off employees. In the words of Anzor Kokoladze, the head of a network of home appliances shops “Techno Boom” , the risk of reducing the staffs always exists in the country which is experiencing such  a difficult economic situation.

However, he notes, “Techno-boom” doesn’t face this problem as the management was able to optimize costs, mainly through  logistics.

“We have also adjusted the investment plans. If before we were focused on the development, now we focus on efficiency gains. This is reflected, for example, in a more precise and detailed calculation of stocks of goods, as well as reduction of  their number. If earlier we had a stock of goods  for  2.5 months, now – only for 1.5,” Kokoladze explains.

“Coca-Cola Bottlers Georgia” also does not plan to reduce  employees. According to the company’s founder  Temur Chkonia, in spite of the fact that  the company is working with little or no income, staff reduction is not planned.

“We plan to adjust costs, but it will not affect either salaries or number of employees,” says Temur Chkonia.

According to him, the country’s difficult economic situation has developed because of the devaluation of the national currency, and a tense social background can be discharged only if the government rationally spends funds.

“We need to cut government spending, reduce  the number of employees in state institutions, as well as abolish  a number of useless ministries and departments, ” Temur Chkonia beleives.

In his opinion,  stripping the National Bank of its supervision function  will not solve the problem of the devaluation of the lari.

“The only real way out of the situation is the inflow of investment, which can naturally stabilize the exchange rate,” “Coca-Cola” founder  adds.