IFC Survey: Business Optimism Declines, Despite Improvements

The government?s reform efforts have resulted in a more favorable environment for doing business in Georgia, but business owners are less optimistic about the future, according to survey results issued by the International Finance Corporation (IFC) on June 8.

The findings by IFC, the private sector arm of the World Bank, are based on a comprehensive survey of some 2,000 smaller business owners in Georgia.

The study says that business worries over political instability, corruption, and taxes ? once seen as serious obstacles ? have declined significantly since 2003, the last time the survey was carried out.

But ?significant challenges? remain, involving concerns over tax code ambiguities, licensing and inspections and customs inefficiencies, according to the survey.

?Unfair competition, insufficient infrastructure development, and ongoing concerns about corruption are highlighted as well. These issues contributed to business owners? lack of optimism: only 40 percent indicated confidence that the business environment would continue to improve in the coming year, down from 75 percent in 2003,? IFC said.

This post is also available in: ქართული (Georgian) Русский (Russian)