“What is happening with
the national currency today is a very serious problem that negatively
affects the business,” Tamaz Daushvili, the head of the Dio company, says.
The business community believes if the lari keeps on fall, businessmen will have to make a difficult choice - cut either
salaries or people.
“Many companies in
various sectors were forced to hike prices for their products that dramatically lowers the purchasing power of the
population. Ultimately, this affects the business - people can’t buy goods in
the same quantity that business causes a decline in business income. In this situation, everyone wants to
survive and postpones reinvestment until better times that hampers the development
of business and the economy, ”he says.
All this has affected the company
Dio which sells blinds –the company was forced to increase prices by 10-15%, and if the devaluation of
the national currency continues, the company CEO does not exclude tougher
“90% of our products are
produced locally, but we are very dependent on imported raw materials and
equipment that directly affects the
final cost of the product. We were forced to hike prices by 10-15%, and if
sales are reduced, we will either have to cut salaries or staff , ”Tamaz Daushvili explains.
In his opinion, in politically
unstable countries the
general negative situation affects the national currency’s rate, the economic development
and hinders the business from growth. The businessman notes that the
authorities are directly responsible for the current situation which is obliged
to ensure political stability.
Authorities must ensure
political stability and political consensus. The country cannot live in tension
24 hours a day and 365 days a year. The government must shift its focus to the healthy
development of the economy and the sustainability growth,” the businessman notes.
In Daushvili’s words, tax cuts,
a more favorable business climate, the rapid implementation of large
infrastructure projects, foreign investment, proper budget planning can boost the country’s economic growth.