Georgian PM says “accelerating” economic growth Govt’s “most important national task”

Georgian Prime Minister Irakli Kobakhidze on Wednesday told Rustavi 2 TV channel accelerating domestic economic growth by restoring the country's “connecting function” between the West and the East represented the Government’s “most important national task”.

Kobakhidze said despite a “very fast pace” of average 9.7 percent of growth between 2021-2023, the country’s economy was still “certainly weak”.

In order to strengthen the country, we need the fastest possible economic growth. The International Monetary Fund’s forecast is very good. By 2029, for example, the difference between living standards of Georgia and France, will be reduced by half, while the difference between living standards with Greece will decrease to about 45 percent”, he said.

The PM added the standard of living in the country was improving “on an annual basis” but the country needed to “catch up” with European standards, and said data from “specific indicators” on flat sales in Georgia since 2012 showed over 80 percent of flat buyers were Georgian nationals. He noted economic growth meant “three times as many people” were also able to purchase a car.

We still lack a lot to reach European standards, poverty alleviation, but if we follow the processes in this way, by 2030 we will essentially have a turning point in the social condition of the population and poverty, if not completely, will be almost alleviated”, he added.

There is a lot of speculation. There is one EU country - I will not name it deliberately so as not to offend anyone - where poverty today is 22 percent, in an EU member state. We need maximum economic growth to gradually catch up with European standards. One of our tasks is to alleviate poverty. We are making rapid progress here as well”, the PM said.

The Government head said the share of the population living below the poverty line had been 15.4 percent last year and dropped to 11.8 percent according to this year’s data.

In comparison with 2012, the poverty rate in 2012 was 30 percent [...] Looking at the last year's data, this figure decreased to 435,000”, he added.

Kobakhidze claimed the domestic opposition placed “very high hopes on disruption of economic growth and devaluation of national currency”, and noted a “very short-term” fluctuation in the exchange rate which he said had lasted “about two to three weeks” as the country’s Government managed to “stabilise the situation shortly”.

As for the economic growth, we had a very high economic growth in May, even on the backdrop of protests [against the controversial domestic law on transparency of foreign influence]. According to the data of the first five months, the average growth is 9.3 percent, which is the highest indicator in Europe”, he noted.

The preliminary data for June is also very good, and we hope to improve the average even more with the June data. In the future, we have very serious projects. We are trying to restore our country’s connecting function between the West and the East”, the official added.

The PM also noted the declaration on the “special role and function” of Georgia in energy connectivity, adopted by the leaders from across Europe at the European Political Community Summit last week in the United Kingdom.

Kobakhidze said a number of projects were being implemented and “quite large” investments had been made in infrastructure, and noted construction works of highways from capital Tbilisi to the Black Sea city of Batumi would be completed “soon”.

The official noted the Government wanted to “connect to the borders” of Azerbaijan and Armenia, while also highlighting “serious projects” in development of railways and a deep sea port in the north-western town of Anaklia to ensure increased logistical capability between Asia and Europe.