Home / Economy / IMF Warns against Low Competition in Georgia’s Banking and Health Sectors

IMF Warns against Low Competition in Georgia’s Banking and Health Sectors

The International Monetary Fund (IMF) recommends that the Government’s role in economy should gradually decrease to neutralize economic development obstacles.

For example, number of state-owned enterprises should decrease, because they seriously compete with the private sector in several countries of the region. These recommendations are given in the last IMF report.

Inefficient management of state-owned companies lead to inefficient production and subsidized prices, IMF report reads.

There are a lot of state-owned companies in Georgia and they generate fiscal risks, IMF report says.
Government of Georgia should boost competition to recover economy. This step will confirm that the state control will not be replaced by monopolies of specific companies.
High concentration in certain sectors of Georgia should be cured to prevent shaping uncompetitive environment, first of all, in banking and health sectors, IMF report reads.