CIS countries are closely looking at Georgia which is showing good economic growth with no natural resources but paying high energy prices for the ongoing political standoff with Russia.
Photo: Alexey Kudenko
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South Caucasus, Central Asia Show Similar Economic Performance – Report
Largest economies of South Caucasus and Central Asia are developing at a similar pace with comparable economic indicators despite seemingly striking political, social and economic differences, a report by an investment bank says.
Renaissance Capital concludes in its recent report that a growth of foreign investors’ interest to CIS nations may come as a result of Georgian and Kazakh companies’ entrance to markets of capitals.
Russia is not the only CIS member with stable GDP and industrial growth, Renaissance Capital’s Ekaterina Malafeeva says in the report. Russia is not even the first in terms of GDP and industrial growth rates if we do not consider the size of its economy. Uzbekistan, once an underdog, is pushing ahead with its privatization program and is on the verge of opening its economy to foreign investors. Economic growth in Armenia is to outstrip that in Russia which is mostly to the low base factor, according to Renaissance Capital. Another reason for Armenia’s accomplishment is in its close economic ties with neighboring Georgia which has recently been showing rapid growth under macroeconomic stability.
Reforms in Georgia, however, are not completed yet. The country’s parliament last week merged income and social taxes into one. Profits tax was cut from 20 to 15 percent. Declining taxes and streamlined tax system may become an overall trend for the whole region. Meanwhile, other CIS countries are looking closely at Georgia which is showing good economic growth with no natural resources but paying high energy prices under the ongoing political standoff with Russia.
www.kommersant.com
All the Article in Russian as of July 20, 2007
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