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International Monetary Fund

2003 and the first quarter of 2004 (i.e., between the first quarter of the last year before and the first quarter after the revolution). Figure III.2. Georgia: Shadow Economy Estimates (SDS Survey Method), 2001–05 (In percent of (sectoral) GDP) Sources: State Department for Statistics of Georgia (SDS); and Fund staff estimates. 63. Although the size of the shadow economy shrunk through the fourth quarter of 2004, some sectors show recent signs of a rebound in underground activities . In some sectors, this could be related to seasonal effects that

International Monetary Fund

: The Impact of the Georgian Anti-Corruption Drive A. Introduction B. Background: Driving Out Endemic Corruption C. Shadow Economy: Survey-Based Estimates D. Shadow Economy: The Demand for Cash E. Conclusions References Figures III.1. Georgia and Selected CIS Countries: Sales Reported for Tax Purposes, 2002 and 2005 III.2. Shadow Economy Estimates (SDS Survey Method), 2001–05 III.3. Comparing Shadow Economy Estimates, 2003–05 III.4. Domestic and Foreign Currency Deposits, 2001–05 IV. Legal Entities of Public Law in Georgia

International Monetary Fund
This Selected Issues paper reviews the financial sector development in Georgia in recent years, and investigates why it has lagged behind economic development, as well as developments in more advanced transition economies. The paper briefly reviews recent financial sector development in Georgia, comparing it with developments in its neighboring countries in the Caucasus, the seven poorest countries in the Commonwealth of Independent States (CIS-7), the Baltics, and central and eastern Europe. The paper also analyzes possible factors constraining financial intermediation in Georgia and in some of the CIS countries more generally.