Economy Minister: Georgia maintains “advanced position” in region for economic growth

  • Georgian Economy Minister Levan Davitashvili said the country maintained an “advanced position” in the wider region for its economic growth rate. Photo: Ministry of Economy, 4 Dec 2023 - 18:26, Tbilisi,Georgia

Georgian Economy Minister Levan Davitashvili on Monday said the country maintained an “advanced position” in the wider region for its economic growth rate, and credited the outcome with the Government’s “prudent” macroeconomic policy.

Speaking at a press briefing at the Administration of the Government, Davitashvili said the country’s economy had grown 6.9 percent year-on-year between January-October and by 6.2 percent in October alone.

He said the growth was mainly due to “high investment activity”, as well as economic activity in foreign trade and tourism.

The Minister also highlighted “one of the lowest inflation rates” compared to other countries of the wider region and said inflation had remained below target rate since April.

He also shared data published by the National Statistics Office that said the consumer price index had decreased by 0.2 percent in November compared to the previous month, while the annual inflation rate amounted to 0.1 percent. 

The Office also said prices of certain food products and non-alcoholic beverages, furnishings, household equipment and maintenance, as well as healthcare decreased month-on-month last month.

I think the most important thing is for society to feel concrete results of economic progress and normal, successful economic policies. We see inflation maintaining a level below the target, therefore there are many opportunities to make bolder macroeconomic decisions and further promote economic growth”, Davitashvili pointed out.

He also noted a “stable improvement” recorded in the business sector in the third quarter, saying it was “uniquely” related to the confidence of the private sector in the Government's economic policy. 

Davitashvili shared latest results of enterprise activities across the country, saying the turnover received by the Georgian business sector had increased by 8.8 percent (y/y) and amounted to ₾51.7 billion ($19.19bln) in the third quarter.

The value of production generated by the business sector also increased by 5.2 percent (y/y) and amounted to ₾19.9 billion ($7.38bln).

It is very important for us to maintain a stable political situation in the country in order to have even better economic results in the future”, the official added.

The statistics body also said the trade sector, including repair of motor vehicles and motorcycles, had recorded the highest share - 36.3 percent - in the total turnover in the business sector.

How many people are employed in the business sector?

Georgian businesses employed about 757,900 people in Q3, which is a 4.8 percent year-on-year increase, the Office said.

The majority of people - 42.6 percent - were employed in large businesses, 20.8 percent in small businesses and the remaining 20.8 percent worked in medium-sized businesses, it noted.

What is the average monthly salary in Georgia’s business sector?

The average monthly salary for those employed in the business sector in Q3 was ₾2,007.2 ($744.85). This was an increase of ₾293 ($108.73) y/y.

Average monthly salaries based on the size of businesses were as follows:

  • Medium-sized businesses: ₾2,292.8 ($850.83)
  • Large businesses: ₾2,035.7($755.43)
  • Small businesses: ₾1,781.6 ($661.13)

In Q3, trade - with 28.6 percent - manufacturing - at 11.9 percent - and healthcare and social work - at 9.7 percent - were leading areas in the sector by the number of employees, the statistics body added.