“If the lari keeps on falling,  businessmen  will have to cut either salaries or people”

“If the lari keeps on falling, businessmen will have to cut either salaries or people”

access_time2019-09-05 14:38:42

“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 decisions.

“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.


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