Georgian PM: achieving above 10% economic growth in 2025 “absolutely realistic”

Georgian Prime Minister Irakli Kobakhidze on Thursday said it was “absolutely realistic” for this year’s domestic economic growth rate to exceed 10 percent, in comments during a press briefing at the Administration of the Government.

Reflecting on past performance, Kobakhidze highlighted the nine percent growth recorded in the past year, which he said was a “positive indicator” of the nation’s economic trajectory.

We hope to at least repeat the same result next year. Last year’s figure was higher than the year before. In 2023, our economic growth reached 7.8 percent, surpassing the previous year. We want this year’s figure to be even higher, and there is potential for this. January is typically strong in economic terms, and we plan to enhance our activities throughout the year. Therefore, it is absolutely realistic for this year's growth rate to exceed 10 percent”, he said.

The preliminary budget forecast indicates a growth rate of six percent. However, we have consistently exceeded our preliminary estimates in the past, including those from the International Monetary Fund. Therefore, a growth rate above nine percent is realistic. The actual outcome will depend on various factors, including regional developments”, the Prime Minister added.

Kobakhidze addressed the “radical opposition's claims of an impending economic disaster”, asserting their predictions had not materialised.

Radical opposition supporters have been talking like this for years. Since 2020, they have consistently warned of risks and problematic developments. However, [...] you can see against the background of these statements [that] we were able to increase the economy of our country by ₾40 billion ($14.14bln) in four years”, he said.

The Prime Minister added the goal for the next four years was to add another ₾40 billion to the domestic economy, targeting a total gross domestic product of at least ₾130 billion ($45.94bln) by the end of 2028.

No matter what these people say, we will continue to look after the development of our country”, he concluded.

The World Bank last week 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.

Kobakhidze credited his Government’s “correct” economic policy and management, as well as maintenance of peace in the country, for the 2024 domestic growth rate.