PM: Gov’t oversaw double-digit 2021 growth “when competent people thought country was facing default”

Georgian Prime Minister Irakli Garibashvili on Monday said the Government had ensured a double-digit economic growth in 2021, in contrast to forecasts by “quite competent people” that said the country was headed for a “default” that year. Photo: PM's press office

Agenda.ge, 27 Feb 2023 - 16:32, Tbilisi,Georgia

Georgian Prime Minister Irakli Garibashvili on Monday said the Government had ensured a double-digit economic growth in 2021, in contrast to forecasts by “quite competent people” that said the country was headed for a “default” that year.

The Government Administration cited Garibashvili as making the comment at an event summarising the work of the National Bank of Georgia President. The PM told the audience at the event his Government had done “its best to ensure peace, stability and high economic growth” in the country.

[W]e were able to close 2021 - the year during which some quite competent people believed the country was headed to a default - with a double-digit economic growth”, the Government head told the audience, which included representatives of Georgia’s executive and legislative authorities, diplomatic corps and the Executive Director of the International Monetary Fund.

US Ambassador to Georgia Kelly Degnan also attended the event. Photo: PM's press office

He recalled the “huge” economic damage incurred as a result of the Covid-19 pandemic, followed by a “most difficult” “geopolitical reality” in the wake of the war in Ukraine, and also reminded the audience about the economic circumstances at the start of his term at the helm of the Government in 2021.

"[T]he budget deficit was almost 10 percent, while the public debt had exceeded 60 percent of the gross domestic product. The exchange rate of the national currency was at almost 3.4 against the dollar. We had an economic [downturn] reaching six percent”, Garibashvili said, before noting the Government and NBG Governor Koba Gvenetadze had “overcome these challenges and achieved a double-digit economic growth” since.

“Today, the budget deficit is 2.8 percent, while economic growth was 10 percent last year. We significantly reduced the public debt - to almost 38 percent. GDP is at its historic maximum, as it will reach $25 billion”, he noted.

Finance Minister and Economy Minister were also among the guests. Photo: PM's press office

“GDP per capita will be $8,000 and the exchange rate of the lari will range between 2.6 and 2.65 against the dollar. In addition, the unemployment indicator is at its historic minimum. The same applies to the poverty level”, the Government head also pointed out.

“What is most important [is that] economic growth during these two years has enabled Governor Gvenetadze to replenish the international reserves of the country to their maximum”, Garibashvili added, expressing his gratitude to Gvenetadze for his work and highlighting the significance of the “coordinated work” of the Government and the National Bank.