Georgian PM, Economic Council review current and future projects, economic growth

The current and future economic projects, as well as positive indicators of economic growth in the country, were discussed on Saturday by the Georgian Government’s Economic Council, led by Prime Minister Irakli Garibashvili.

The Council highlighted the stability of the Georgian economy amid the existing challenges and emphasised the economic growth of 7.5 percent recorded in April, as well as the average rate of growth of 7.3 percent in January-April. It was also noted that poverty and unemployment were at their “historic low”, the Government Administration said.

The increase of exports in April by 20.4 percent and the increase in income from tourism, exceeding 100 percent in the first quarter of 2023, were positively evaluated by the Council. Positive trends of the first quarter of 2023 in the business sector both in terms of turnover and output, as well as employment, were also pointed out at the meeting.

The conversation also touched on the positive trends of decreasing inflation against the background of challenges in the region and the world, with an annual inflation rate amounting to 1.5 percent in May, decreasing by 1.2 percent compared to the previous month, which indicates a “significant” reduction in inflationary pressure.

The Council said after May 2022, inflation in Georgia had a tendency to decrease, with the level of inflation falling below the target rate of 3 percent set by the National Bank.

The positive rate of growth of direct foreign investments in Georgia in the first quarter of 2023, amounting to $496.6 million, was also discussed at the meeting, with the Council adding there was a 56 percent increase in foreign direct investment compared to the pre-pandemic figure of the first quarter of 2019.