To Discussion of Post-Crisis Drivers of Georgia s Economic Growth

Abstract

Statistics evidence that drivers of pre-crisis model of economic growth in Georgia (foreign direct investment and financial/banking sector development) are constrained. The modification of pre-crisis to post-crisis model consists of further reorientation from consumption to investment component of GDP and diversification of investment sources. FDI have to be accomplished by internal (private) investment, the main generator of which are SMEs. SMEs gather small private savings and transfer them to private investment. SMEs might play a greater role in country's economic growth.