Economy Minister: Gov’t’s “base scenario” projects Georgian economy to grow 6% in 2025

Levan Davitashvili, the First Vice Prime Minister and Economy Minister of Georgia, on Monday provided insights into the Government’s economic development projections, saying its base scenario anticipated a six percent growth in the country’s economy this year.

He added the Government was also considering a “negative scenario”, which maintains expectations for growth to exceed three percent.

We are considering various scenarios, including some negative ones. However, I want to emphasise we expect to experience economic growth in line with our baseline scenario. Our discussions are based on the belief that political tensions will ease and that significant changes will occur on the international stage. Generally, these developments can lead to a more positive outlook. Therefore, we will continue our efforts in that direction”, he said.

Additionally, the Minister addressed the impact of international dynamics on domestic political processes, asserting improvements in relations with strategic partners could have “significant effects” on local circumstances.

He dismissed demands by the opposition for new parliamentary elections on the backdrop of recent protests against the Georgian Government's decision not to include accession talks with the European Union in its agenda until 2028, describing them as “unfounded given that elections have already been held”, in reference to the vote in October.

I will not even begin to evaluate the demands of the protests [...] Elections have been held, and now the country must continue its operations and focus on essential tasks for the benefit of every citizen”, he said.

Davitashvili noted while there could be “diverse opinions and approaches” in the domestic political arena, actions that were “damaging to economic processes” were “unjustifiable”.

We may have different ideas, oppose different decisions, and have varying plans, but actions that uniquely damage economic processes are certainly not justified in any way”, he told the media during a press briefing following a Government meeting earlier today.

He also expressed concern regarding the current state of opposition in the country, which he characterised as “lacking a high level of political culture”.

We observe calls for actions such as sabotage, disruption of economic processes, and paralysing certain economic activities, along with imposition of [foreign] sanctions [on the Government]. Each of these actions not only represents a call to action but also constitutes a campaign that can cause harm. These activities pose reputational risks and negatively impact sentiment and the economy”, Davitashvili said.

The Minister stressed these actions “directly affect the well-being of the country’s population”, adding they represented an “incorrect political path”.

Davitashvili added the Government would “strive to maintain political stability and foster dialogue with key economic stakeholders”, including the private sector, international investors, and financial organisations, adding “this will allow us to ensure significant progress in the economy and prevent a slowdown in our consistent development”.

I believe it is crucial for the public today to concentrate more on implementing important tasks that are essential for the country’s success in a challenging geopolitical environment. In this context, fostering economic activity and ensuring economic stability are particularly significant”, he said.

The Minister highlighted economic activity and stability were “important” for the country, expressing belief domestic businesses viewed the Government’s stance as “rational” and would adopt a “similarly rational approach”.