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Balvanera: Estonian Model Provides a Range of Opportunities, But it Carries Risks as Well

Balvanera: Estonian Model Provides a Range of Opportunities, But it Carries Risks as Well

European Bank for Reconstruction and Development (EBRD) approves the process of tax liberalization in Georgia, but indicates to the risks as well.

Regional Director of the Bank Bruno Balvanera noted with “Business Contact”, that the so-called “Estonian Model”, which introduction is planned in Georgia, gives the economy a range of opportunities, but it carries risks as well, which are related to the reduction of budget revenues.

Balvanera noted, that tax burden is low in Georgia, however, further simplification of the system, will be more effective and give benefits to the economy, which will be positive.

Balvanera noted, that they are observing the process; as they are interested in the effect of the model in the long-term period.

Balvanera announced the new forecast of economic growth in November. He noted, that positive trend was noted during the summer, including tourism number growth.

To remind, EBRD predicts economic growth of 3, 4% in Georgia this year.