Inflows of private capital, which reached $2.3bn last year and between $1.2bn and $1.5bn in the first half of 2008, are expected to drop to between $300m and $400m in the second half, according to Lado Gurgenidze, the Georgian prime minister. He has been calling for international aid to cover the shortfall in capital inflows.

The government predicts a total drop in GDP growth from 12.4% last year to between 0% and 2% in the second half of 2008.