Finance Minister: GDP per capita forecast to exceed $7,900 by 2023

Georgian Finance Minister Lasha Khutsishvili on Wednesday said the gross domestic product per capita figure was projected to exceed $7,900 by 2023.

Khutsishvili made the comment at a discussion of the final draft of the 2023 budget at the Parliament, the Ministry of Finance said. 

In the coming years, the economic growth rate is expected to be maintained at an average of five percent, while the GDP deflator forecast is three percent”, the Minister said, noting the numbers would mean the nominal value of GDP would increase from ₾79.7 billion ($30bln) in 2023 to ₾101.2 billion ($38bln) by 2026 and GDP per capita would exceed $7,900 by 2023 and $10,000 by 2026.

He also added that while inflation remained one of the main challenges this year both domestically and across the world, next year "with the exhaustion of the base effect, a significant decrease in the rate of inflation is expected". 

The average rate of inflation is predicted at the level of 5.3 percent [in 2023], although it will fall below the four percent mark by the end of the year", he pointed out.

Khutsishvili also announced ministries that would receive higher funding next year, highlighting the financing of the Ministry of Health was increased by ₾59.8 million ($22.53mln) from the previous draft of the budget and now exceeded ₾6.85 billion ($2.58bln).

Pension for all categories of pensioners is set to increase, while the budget also includes increased social assistance for socially vulnerable individuals. The Government will also raise assistance for socially vulnerable children to ₾200 ($75) by allocating ₾65 million ($24.48 mln) in this direction. The assistance totalled ₾50 ($18.83) two years ago.

In addition, employees of the private sector will have their maternity leave supplement doubled to ₾2,000 ($734) starting in January, while public school teachers will receive full pay during their maternity leave starting next year.

The financing of the Ministry of Education will increase by ₾52.2 million ($19.66mln) compared to the previous draft and cross the ₾2.30 billion ($0.87bln) mark. The money will be distributed in the following categories:

• ₾30 million for public school financing
• ₾32 million for setting up computer laboratories at schools
• ₾2 million for resource officers

The Ministry of Infrastructure will receive ₾3.33 billion ($1.25bln) next year, which is ₾355 million ($133.72mln) more than it was considered in the previous draft of the budget. Of the money, ₾200 million ($75.34mln) will be allocated for the tourism sector, ₾100 million ($37.67mln) to construction and renovation of kindergartens in various regions, ₾25 million ($9.42mln) to works on infrastructure for hosting the 2025 Winter Youth Olympic Games and ₾30 million ($11.30mln) to the Renewed Regions state programme.