Georgian PM forecasts 9.5% economic growth, stability for national currency by year-end

Georgian Prime Minister Irakli Kobakhidze on Wednesday said both the domestic economy and the exchange rate of the national currency, the lari, would stabilise on the backdrop of political instability and ongoing public protests against the Government’s suspension of European Union accession talks, adding the country was poised to achieve “at least” 9.5 percent growth by the end of the year.

Kobakhidze highlighted the current economic growth rate was higher compared to last year.

Economic growth continues at a fast pace. The data from October shows an 11 percent growth rate, leading to an average of 10 percent economic growth over the past 10 months. We have double-digit economic growth this year, which is higher than last year. Of course, this process will continue”, he said.

The Prime Minister noted the “several days of unrest might cause some temporary fluctuations” in the exchange rate of the lari.

The lari will stabilise as it happened in the case of previous fluctuations - the exchange rate of the lari used to change for a few days, then return to its original value. It will be the same now - the exchange rate of the lari will stabilise, the economy will stabilise as well”, he said.

We will have a very high level of economic growth. Last year's growth rate was 7.8 percent, and this year we anticipate an even greater increase. This growth is occurring amidst a backdrop of radicalism, particularly during the election period, which has not been a calm environment”, Kobakhidze added.

Claiming “political radicalism” on the domestic scene over the recent years, he claimed the growth “would have been even greater if it were not for this radicalism [and the opposition] trying to organise four revolutions in four years”. 

The Prime Minister claimed the events were “encouraged by foreign funding”, but added the state was “stronger” thanks to the law on transparency of foreign influence, adopted this year. He expressed confidence that the “radicalism” would “decline in the coming years”, which he said would, in turn, contribute to an “even greater improvement” in the country’s economic growth rate.