PM highlights 7.2% economic growth, inflation at 0.9%, vows farmer subsidies for damaged grapes
Georgian PM Irakli Garibashvili on Monday said the country’s economy was growing. Photo: Government’s press office
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Georgian Prime Minister Irakli Garibashvili on Monday said the country’s economic growth had hit 7.2 percent in the first six months of this year while inflation had decreased to 0.9 percent in August, before pledging support for farmers in the country’s east by ensuring subsidies for damaged grapes following hail, strong winds and heavy rains last week.
Speaking at the weekly Government meeting, the PM stressed his Government's “effective work” had ensured “continuous economic growth”, before announcing adjustments in the state budget to add “interesting initiatives and new projects” and praising his office’s efforts to regulate and lower inflation.
Noting the “big achievement” on the backdrop of high inflation and prices remaining a challenge in Europe, the United States and the rest of the developed world, the head of the Government also said the turnover of the business sector had increased by 15 percent and amounted to ₾48 billion ($18 billion) in the second quarter, while the figure for the first and second quarters exceeded ₾92 billion ($35 billion).
He stressed the rise was due to the Government's policies that ensured “predictability and transparency” in the country, allowing the business sector to “feel stable and safe”.
The PM also highlighted revenues from tourism had amounted to $4.5 billion last year and added more was expected in 2023, adding the flow of passengers at the Kutaisi Airport in western Georgia was close to its “historical maximum” and the Government had plans to extend its runway to 3.5 km.
We will start design [work on the runway] soon. The new runway and related infrastructure will be completed in 18 months”, he said.
Pledging support for farmers in the country’s eastern winemaking Kakheti region following last week’s hail, strong winds and heavy rainfall, the PM said the Government would ensure subsidies for all grapes, including the produce damaged in the adverse weather.
He noted the Government would allocate 90 tetris (about $0.30) in subsidies for each kilogram of grapes, including for the damaged harvest.
Pointing to wider outcomes in supporting winemaking, the official said only 40 vineries had been present across the country 10 years ago, under the previous United National Movement Government, and contrasted the figure with 2,500 under the Georgian Dream authorities.
He added in contrast to the 25,000 hectare area for vineyards under the previous authorities, the figure had doubled and amounted to 50,000 hectares under the current Government.
Speaking about benefits from winemaking, the PM said the Kakheti region had received ₾270 million ($102 million) in income last year, while the figure was up to ₾40 million ($15 million) 10 years ago.
He stressed total incomes received by farmers and winemakers in the region over the past 10 years had exceeded ₾2 billion ($752 mln), claiming the figure would not have exceeded ₾200 million ($75 mln) under the UNM Government.
The National Wine Agency on Sunday said the state enterprise Harvest Management Company was ready to receive and process grapes damaged by the climate conditions, following heavy rainfall, hail and strong wind late on Saturday, affecting several villages in eastern winemaking Kakheti region.
The Georgian economy grew 5.5 percent in July year-on-year and 7.2 percent in the first seven months of 2023, the National Statistics Office of Georgia said on Friday. Last month’s growth was mainly driven by estimated real growth in financial and insurance activities, construction, trade, professional, and scientific and technical sectors, the Office said.
The monthly figure of inflation in Georgia stood at -0.5 percent for July in statistics compiled using a recently adopted methodology of the European Union’s harmonised indices of consumer prices, the National Statistics Office of Georgia said on Thursday.
Georgian Prime Minister Irakli Garibashvili on Friday told the country’s Parliament inflation was expected to further decline in the country after being observed at 1.5 percent in May, a 0.1 percent reduction compared to the previous month.
Georgian Prime Minister Irakli Garibashvili on Monday announced his Government had allocated about ₾25 million ($10 mln) for the construction of a “new and modern” airport on the site of an existing airfield in the city of Telavi in Georgia’s eastern Kakheti region.
Georgian Economy Minister Levan Davitashvili on Monday highlighted the “historically maximum number” of 737,000 people he said were employed in the domestic business sector.
Georgian Prime Minister Irakli Garibashvili on Friday said "thanks to the Government’s pragmatic foreign policy”, Georgia “has sustained economic growth over the past decade” and “has experienced double-digit economic growth for two consecutive years, with a GDP growth rate of over 10 percent in 2021 and 2022”.
Georgian Deputy Economy Minister Mariam Kvrivishvili on Friday highlighted the “great importance” of farmers' work for the development of economy and creation of jobs in the country, while congratulating and thanking farmers at the event dedicated to their professional day.