Gross domestic product per capita to reach $8,000 in 2023, says PM

Georgia’s gross domestic product per capita will reach $8,000 in 2023 while the current year is on track to close with 10 percent economic growth, Prime Minister Irakli Garibashvili said on Tuesday as part of his end-of-year summary of the Government’s work.

"We are happy with the fact that this year, again, we will have 10 percent economic growth. Last year we had 10.5 percent of economic growth. For comparison, gross domestic product per capita in 2020 was about $4,200 dollars, in 2021 it increased, and this year it is already expected that GDP per capita will be approximately $6,700 and according to our forecasts, in 2023 it will reach $8,000”, he told lawmakers.

“The economy of our country was about ₾50 billion ($18.52bln) in 2020, while it will be ₾80 billion ($29.63bln) in 2023 - that is, we have an increase of ₾30 billion ($11.11bln) in three years, which is quite serious progress", Garibashvili said.

The PM also noted the external debt of Georgia, pointing out it had increased to almost 60 percent of GDP in 2021 while this year it had been brought down to 39 percent and was expected to be further reduced to 38 percent in 2023. He highlighted the reduction of over 22 percent in the figure “in just two years".

Budget deficit reduction was also noted in the summary, with the Government head noting the figure had been at a "very high” 9.3 percent at the time of his appointment as Prime Minister, and highlighting its reduction first to 6.1 percent and then three percent last year. He added the deficit was expected to amount to 2.8 percent next year.

Garibashvili also said "we have significantly increased exports during the past two years", pointing to a 32 percent year-on-year increase between January-November, a change he said had taken the figure to the $5 billion mark. Domestic exports increased by 21 percent y/y and totalled $3.4 billion in the reporting period, he also pointed out.

The Prime Minister said the tourism sector had “completely” recovered from the Covid hit, and noted revenues from international tourism had reached $3.2 billion this year.

Freight shipments hit a “record high” this year, he also told MPs, highlighting an increase of 25 million tonnes of goods that comprised nearly 20 percent more freight transported compared to the same period last year. 

Garibashvili also said foreign direct investments in the country had increased by 100 percent y/y and totalled $1.7 billion in the first 10 months of the year, adding the share of the European Union in the total number of FDI stood at 47 percent.