Georgian PM highlights “peace for increased well-being”, European integration

Georgian Prime Minister Irakli Kobakhidze emphasised the significance of peace for economic prosperity and European integration of the country in an interview with Imedi TV channel on Monday, telling the outlet the Government “must do everything to increase the quality of well-being” of citizens.

Reflecting on Ukraine’s economic challenges amidst ongoing war, Kobakhidze underscored the impact of war on economic growth.

You have witnessed what the war has brought to Ukraine - loss of tens of thousands lives, severe humanitarian crises and displacement of 10 million people. Additionally, Ukraine’s economy has suffered a 30 percent decline in the first year of the conflict, which is a picture [of Georgia] from the 1990s. The war has not only halted economic growth, but also triggered a severe economic crisis”, he said.

Drawing parallels to Georgia’s experience, the Prime Minister credited the country’s “sustained” economic growth to “12 years of uninterrupted peace”, even amidst global and regional crises. He noted despite facing challenges such as the 2015-2016 war in Ukraine and the Covid-19 pandemic, Georgia had managed to “triple the economy” and expand its budget, attributing this success to the maintenance of peace.

The budget for the next year will be three times higher than it was in 2012. Sustained peace is a key factor in driving economic growth. If we had followed the opposition's proposed scenario, it would have resulted in an economic crisis, a significant downturn, and other serious problems”, Kobakhidze alleged.

The Prime Minister also said attaining a certain level of prosperity was a prerequisite for EU accession.

Here too, the situation is misrepresented. They claim that a country needs to join the EU first in order to receive economic assistance. However, the reality is actually the opposite for those familiar with EU expansion policies. A country needs to attain a certain level of prosperity before being accepted into the EU. This is a key aspect of EU policy”, he said.

Kobakhidze emphasised the need for “rapid” economic development to “catch up with European standards” and maintain the current rate of growth. He said the ruling party’s programme for the upcoming parliamentary elections would “cover all issues”, with a “significant focus” on the economy and economic progress.

Highlighting the recent economic growth in Georgia, the Prime Minister said the country has experienced “rapid” economic expansion over the past three years, with an average increase of 9.7 percent between 2021-2023.

According to the data from the first five months of this year, our economic growth stands at 9.3 percent. These statistics place us in the lead in Europe”, Kobakhidze said.

He also stressed the importance of attracting investments and completing ongoing infrastructure projects to sustain this growth, noting the construction of a Tbilisi-Batumi highway connecting the capital to the Black Sea city, construction of roads, development of railways and plans for a new international airport in Tbilisi designed to accommodate 19 million passengers.

The Government head acknowledged Georgia’s economic growth was still below the European average, but expressed determination to “accelerate development” in order to achieve a per capita income level “comparable to that of European countries” by 2030.