**Georgia Businesses Face Challenges**
Despite a growing economy, businesses in Georgia face many challenges. A recent report from the EU highlights these issues.
**Three Main Problems**
The report found three main problems:
1. **Political Instability**: 76.7% of companies are concerned about the impact of the stalled EU accession process and upcoming elections.
2. **Workforce Shortage**: Half of surveyed companies face skills shortages, leading to a 26% loss in GDP.
3. **Exchange Rate Fluctuations**: Currency instability makes it hard for businesses to plan finances.
**Other Concerns**
Businesses also worry about corruption and inefficient regulations, particularly when it comes to taxes, public procurement, and the judicial system.
**Impact of Workforce Shortage**
The severe shortage of skilled labor costs businesses 55.6 billion GEL each year. This is a major problem that needs to be addressed.
**Trade with EU**
While the EU remains Georgia’s largest trade partner, exports to the EU fell by 18% in 2023. This is due to high compliance costs and limited understanding of regulatory frameworks among businesses.
**SMEs Face Challenges Too**
Small and medium-sized enterprises (SMEs) are growing, but they still struggle with low economic contribution and limited access to EU markets.
**Report’s Conclusion**
The report calls for reforms in education and the judicial system to boost business confidence. It also suggests improving economic policies and trade infrastructure to maintain Georgia’s EU market integration efforts.
Read More @ www.interpressnews.ge