Ruling party head says economic growth reducing living standards gap with “advanced” countries

Irakli Kobakhidze, the head of the ruling Georgian Dream party, on Monday said the country’s economy was growing “not only in absolute terms but also compared to other countries”, reducing the gap with “advanced” countries in living standards.

In his social media post, Kobakhidze compared Georgia’s gross domestic product at purchasing power parity per capita to measure the country's development and the standard of living of its population.

He cited the International Monetary Fund in saying populations of Germany and Sweden lived three times better than in Georgia, in France - about 2.5 times better, in Russia - 60 percent better and in Bulgaria - 50 percent better. 

He compared today’s data to the results of 2012 - the year when the ruling Georgian Dream party came into power - and said the comparison with Germany and Sweden had stood at 4.5, with France at 4, with Russia at 148 percent and with Bulgaria at 67 percent respectively.

Candidate countries for EU membership - North Macedonia, Bosnia, Albania, Moldova and Ukraine, as well as Azerbaijan and Armenia - are behind Georgia. [In] 2023 Georgia surpassed more than 30 countries in terms of economic indicators and moved from the 110th place to the 79th place compared to 2012”, Kobakhidze said.

The ruling party head said the “main factor” of the “rapid” economic development of the country was “not the membership of any union but the economic policy pursued by the government”.

It is often said the economic development in Eastern European countries was accelerated by them joining the European Union. Actually, if we look at the countries that joined the European Union in 2003, we will see that according to the data of the World Bank, in 2003-23 the nominal economy of Lithuania, Latvia and Estonia grew four times, of Poland, Czech Republic and Slovakia three times, and of Slovenia and Hungary twice. 

However, it is interesting that in exactly the same years, according to the data of the same World Bank, the economy of Georgia grew 7.5 times”, Kobakhidze said.

He said according to the International Monetary Fund, by 2028 the difference between the living standards of the population in Georgia and the EU member states would “further decrease”. 

In 2028, the PPP in GDP per capita will exceed $32,000, and the gap with the majority of EU member states will be less than double. In particular, our lag with Italy will be 99 percent, with Spain - 86 percent, with Portugal - 72 percent, and with Greece - 48 percent”, he said.

Kobakhidze noted Georgia had “all resources” to reduce the gap with advanced European countries “to a minimum” by 2030, “eliminate poverty” and “become a high-income country”, noting “necessity” of “maintaining peace” and an “effective” economic policy for the purpose.