Georgia's Acting Prime Minister projects economic growth to surpass $36,000 per capita by 2028

Irakli Kobakhidze, the Acting Prime Minister of Georgia, on Thursday highlighted the country’s “impressive” economic growth over the past four years during a plenary session of the domestic Parliament and presented “ambitious goals” for the economy to exceed $36,000 per capita by 2028.

Pointing to “economic turmoil” of 2012, before the current ruling party’s victory in that year’s elections, when he said the country’s gross domestic product had been a “mere ₾28 billion” ($10.24bln), Kobakhidze noted the economy had since rebounded, growing to ₾50 billion ($18.28bln) by 2020.

Despite facing two regional and global crises during this period, we managed to grow the country's economy significantly”, he said.

Since 2021, the GDP has surged from ₾50 billion to ₾90 billion ($32.91bln), which is a great result. Over the next four years, we aim to achieve an ambitious goal: we want the country’s economy to exceed ₾130 billion ($47.53bln). This means the economy should grow by at least ₾40 billion ($14.63bln), which is a realistic target. We are accountable to the Georgian public for achieving this goal”, Kobakhidze added.

The Acting PM also highlighted the upward shift in Georgia’s purchasing power parity, noting that in 2012, the country ranked at around $10,000 per capita, placing it outside the top 100 nations.

We have moved up to 77th place in this year's rankings, indicating that our economy is growing at a much faster rate than other countries’. This year, our economy is expected to exceed $25,000 in purchasing power per capita”, he said.

Comparatively, Kobakhidze pointed out the gap in living standards between Georgia and France has narrowed considerably.

By 2012, our purchasing power parity was four times less than that of France [...] This difference has now shrunk to 2.5 times”, said the Acting PM, expressing confidence that by 2028, the disparity would close further.

Kobakhidze said achievements of the past four years, including “maintaining peace” and “boosting the country’s economy”, were the result of “unity” within the ruling Georgian Dream party.

The previous four years were full of difficulties and challenges. We faced two attempted revolutions, efforts to destabilise our economy, and attempts to drag our nation into war. Yet, through our unity and resilience, we not only overcame these obstacles but also increased our economy by ₾40 billion”, Kobakhidze told the country’s Parliament.

All of this of course is a result of the unity and strength of our team. I want to take a moment to thank each one of you for your solidarity and determination in this collective struggle. It is this commitment that has led our country to achievements over the past four years. Today, Georgia stands sovereign and stronger than ever, and that is thanks to all of you”, he added.

The Acting PM highlighted an “encouraging” five-year economic forecast from the International Monetary Fund, which positions Georgia to experience significant economic growth, with only Guyana, following its oil discovery, ranked ahead of it.

He claimed Georgia could achieve similar success in economic development without relying on oil. He pointed out the increase in the country’s budget, which he said had risen from ₾8.5 billion ($3.11bln) in 2012  to ₾28 billion ($10.24bln) this year.

Kobakhidze also addressed unemployment, forecasting that by 2028, it would decrease to four percent, a rate “lower than the average” of European Union countries. He noted improving the population’s standard of living was “fundamental” to any economic growth, with employment levels being a “key indicator”.

The Acting PM highlighted unemployment had been “as high as 26.7 percent” in 2012, but efforts over the years had halved this figure, bringing it down to the current14 percent. He said achieving a four percent unemployment rate by 2028 was a “realistic goal”.

Economic growth has a direct impact on poverty reduction, and we have set ambitious goals in this regard. Back in 2012, 1,120,000 people in Georgia lived below the poverty line, which represented 30 percent of our population [...] the poverty rate dropped to 11.8 percent in 2023. Today, 440,000 of our fellow citizens still live below the poverty line”, Kobakhidze said.

While we celebrate this progress, we cannot afford to be complacent or relaxed, knowing that so many are still facing hardships. Alleviating poverty remains one of our primary national tasks. Our vision is clear: we aim to reduce the poverty rate to four by 2028, which would lift around 300,000 people out of poverty”, he added.

The Acting PM noted the Government’s goal was to create an additional 200,000 new jobs in the country, which he said would represent “substantial progress” in reducing unemployment.

Kobakhidze also highlighted growth in average salaries, which he said had been at ₾712.5 ($260.51) in 2012 and exceeded ₾2,000 ($731.26) this year.

This indicates nearly tripled growth, and there is an ambitious goal to have the average salary exceed ₾3,500 ($1,279.71) by 2028”, he said.

The Acting PM emphasised the “strength” of his Government’s economic team, calling it “one of the key factors for success”. He added that, alongside a “sound economic policy”, “effective enforcement” was “crucial”, adding “peace and stability” created the “best conditions” for the Government to fulfil commitments.