“Macroeconomic stability in the country underpins strong economic growth,” stated Lasha Khutsishvili, the Finance Minister, during a panel discussion organised by the Business Association of Georgia (BAG).

The Minister discussed fiscal policy measures aimed at stimulating the economy. He highlighted that while some countries have achieved stability through amendments to their Tax Codes, Georgia has maintained a low tax burden.

“Georgia has adopted a different strategy, which has, on the one hand, driven high economic growth, and on the other, preserved the country’s most favourable macroeconomic indicators. When examining cases of fiscal consolidation and economic recovery elsewhere, Georgia has maintained some of the fastest rates of targeted macroeconomic parameters,” Khutsishvili stated.

The Minister also spoke about the government’s capital expenditures, which have played a significant role in fostering economic growth.

“The government has achieved fiscal consolidation while maintaining long-term capital expenditures at around 7 to 8 per cent of Gross Domestic Product (GDP). This is the highest figure not only regionally but globally.

These capital expenditures include investments in infrastructure such as roads, water supply systems, and electricity transmission lines. Moving forward, our fiscal policy will focus on sustaining fiscal stability and encouraging public investment. Ultimately, these factors create more space for private sector investment, which is the true engine of economic growth,” he concluded.

Minister Khutsishvili expressed his appreciation to the Business Association for organising an engaging discussion and emphasised that such meetings are vital for fostering dialogue between the government and the private sector.