ISET President Eric Livny was invited to Maestro TV on Thursday, April 14 to talk about Business Confidence Index and explain "Kvirikashvili Effect."
Eric Livny explains the upward trend in expectations of businesses since the appointment of a new Prime Minister, Giorgi Kvirikashvili. However, according to Mr. Livny improvements in the business climate will only have a significant positive effect on large and medium-sized enterprises. Unfortunately, 85 percent of Georgian population is "self-employed," which means they have minimal production in order to sustain themselves. These people are not able to find jobs, as they lack proper education and skills. This is a result of Georgia creating jobs mostly in the modern sector of economy. In the long term, the solution will be to offer vocational training, which is something the government is already implementing.
Mr. Livny claimed that "by all data that we have received, the worst is behind us. The worst is behind Georgian economy. So from now on we will see improvement in terms of exports, ability to produce in Georgia, and also in creating jobs. So if we managed to grow in 2015, which was the most difficult year we’ve had since 2009, I think we can look into the future with a lot of confidence."
Watch the video from Maestro TV to learn more.