The inflation rate in Georgia will return to 3% by the end of 2022, Economy Minister Natia Turnava stated earlier today, noting that high inflation is ‘one of the most important issues’ the Georgian population currently faces.
The inflation rate in November this year grew by 0.6% compared to the previous month, with annual inflation rate amounting to 12.5%.
In an address to the Georgian parliament, Turnava noted that in 2021 the inflation rate in the country ‘instantly tripled,’ adding that the only reason for this was the global pandemic.
She also stated that despite these challenges, the country’s national currency is ‘substantially stable as a result of balanced economic policy.’
Minister Turnava stressed the importance of the development of ‘export and import-substitute production’ in Georgia in order to reduce the country’s import dependence as a result of which the population will not be affected by an increase in the price of products on foreign markets.
Turnava also touched upon the issue of poverty in the country and stated that the fight against it is ‘the main direction of our economic policy.’
She welcomed the recent initiative of Prime Minister Irakli Garibashvili which will provide jobs for socially vulnerable citizens who are fit for work instead of social assistance.
This is a project based on the successful experience of European countries and will give motivation to socially vulnerable and able-bodied people to work and receive remuneration,” Turnava said.
Per data from the Social Service Agency, more than 637,000 people receive social assistance in the country. Photo: Nino Alavidze/Agenda.ge.
Minister Turnava stated that the government aims to increase the employment rate in Georgia by developing Georgian business and manufacturing, adding that the goal of the state is to achieve a ‘sovereign investment grade,’ which will provide investors with even more guarantees for sustainable development.
She stated that the government provided a ‘peaceful, predictable and stable’ environment for business.
This achievement is reflected in various international ranking evaluations. Georgia has been able to maintain its sovereign credit rating by ensuring resilience to economic shocks, while the credit ratings of many countries have deteriorated,” noted Turnava.
Turnava said that Georgia is ‘the most ready in the region’ to start negotiations with the US on free trade, noting that the government in 2022 will intensify its efforts to expand free trade regimes.
The spirit of bipartisan support was reflected in a letter from US congressmen just a few days ago to the US Trade Representative urging him to start direct free trade talks with Georgia. This is a very promising message,” said Turnava.
She also stated that 2021 is the year of ‘rapid recovery and a good precondition for further peaceful development.’