Georgian PM attributes 9% economic growth in 2024 to Gov't’s “correct” policies, “stability”

Georgian Prime Minister Irakli Kobakhidze on Friday credited his Government’s “correct” economic policy and management, as well as maintenance of peace in the country, for the 2024 domestic economic growth rate of around nine percent.

Speaking to reporters in Baku, Kobakhidze said Georgia had “stood out as a leader” not only in the broader region but also across Europe with the growth rate.

This is what our Government has achieved. Our task is to repeat the same result by 2025 at the very least, targeting a minimum of nine percent economic growth. I think this is an absolutely realistic task”, he said.

The Prime Minister added the Government remained a “guarantor of business freedom” in the country and vowed to continue the approach. He also highlighted the commitment as a “significant achievement” of the ruling Georgian Dream party.

Reflecting on past challenges, Kobakhidze claimed the “restoration of business freedom” had begun in the country in 2012 when the current Government came to power.

It was us who were able to bring business freedom back to the country”, he said, drawing a contrast to the previous administration, which he accused of having “fostered a bloody regime".

A systematic business racket took place that time, victimising many individuals. The well-being, health, and even lives of thousands were sacrificed to business racketeering, with one of its leaders being Nika Gilauri [the former Prime Minister in the United National Movement Government]. [...] Discussions of business freedom from [the now-in opposition party] is absolutely ironic”, Kobakhidze said.

The World Bank projected Georgia to have the highest average economic growth in the Europe and Central Asia region, with a rate of 6.7 percent from 2024 to 2026. The Bank has revised its economic growth assessments for the country, increasing the forecast for 2024 to nine percent, which is an increase of 3.8 percentage points compared to the June 2024 forecast.

The growth forecast for 2025 has also been raised to six percent, one percentage point higher than previously estimated. For 2026, the growth rate is expected to remain at five percent, unchanged from the June 2024 estimate.