Georgia’s Prime Minister Irakli Kobakhidze has announced that the country will achieve two economic milestones by year’s end: surpassing GEL 100 billion in gross domestic product and breaking through the USD 10,000 per capita income threshold for the first time in its modern history.
Speaking at the Business Association of Georgia (BAG) conference, Kobakhidze declared these achievements symbolic of the nation’s robust economic trajectory and commitment to European living standards.
“Our gross domestic product will exceed GEL 100 billion by year’s end, and for the first time we shall surpass the USD 10,000 per capita indicator,” the Prime Minister stated.
According to the head of government, maintaining this momentum is crucial for the country to preserve its strong position and improve living standards for the population.
“Challenges remain, but at the current pace, we believe that Georgia will be able to approach European standards of economic well-being as closely as possible in the medium term.
This year, we shall exceed GEL 100 billion for the first time. Our gross domestic product will make over GEL 100 billion by year’s end, and we will surpass the USD 10,000 per capita indicator. Naturally, maintaining this momentum is essential for the country to preserve its strong position and improve the standard of living.
Economic growth is reflected across broad segments of the population. Employment figures have risen significantly. Between 2022 and 2024, the number of employed persons in our country increased by 185,000, and average salaries have exceeded GEL 2,200, whereas the figure was approximately half that in 2021,” declared Irakli Kobakhidze.
The Prime Minister also highlighted that a single-digit poverty rate has been recorded, reaching 9.4% last year, “for the first time in history since the 1990s.”
Speaking at BAG, Kobakhidze stated that while challenges remain, poverty could be fully eradicated in the country within the medium term, given the current pace and trends.
“These results are grounded in tangible achievements. We have a very solid economic policy, a liberal tax system, and a free business environment, one of the key accomplishments since 2012. The government is also endeavouring to support businesses in every possible way. At the same time, effective management is crucial, and I believe that this is also being maintained at a high standard within the relevant government structures,” the Prime Minister stated.
Irakli Kobakhidze also touched upon negative forecasts regarding the lari exchange rate.
“There were negative forecasts regarding Georgian lari exchange rate stability; so-called experts were very active in this direction and hoped that the rate would exceed 3.10 lari against the dollar. However, as you can see, since January, the lari has strengthened by 15 tetri against the dollar,” Kobakhidze stated.
According to the head of government, between January and August, the National Bank replenished foreign currency reserves by USD 1.5 billion, which represents a record indicator.
“The stability of the lari exchange rate is crucial. There were negative forecasts in December and January. So-called experts were very active in this direction. They hoped the rate would exceed 3.10 lari against the dollar, but as you can see, we have different data. Since January, the lari has strengthened by 15 tetri against the dollar. Between January and August, the National Bank replenished foreign currency reserves by USD 1.5 billion, which is a record indicator in our history,” the Prime Minister declared.
Irakli Kobakhidze also referred to the shortcomings related to the state enterprises.
“There were serious shortcomings in state enterprises, and as a result of work carried out over these few months, we managed to save GEL 700 million. This was achieved partly through staff optimisation. In this regard, state enterprises will save a minimum of GEL 60 million annually,” Kobakhidze stressed.
According to the head of government, there were shortcomings in other areas as well, and through improved management, the government managed to rectify these deficiencies.
“In terms of expenditure optimisation, we managed to save over GEL 600 million more, solely in state enterprises,” declared Irakli Kobakhidze.
The Prime Minister also referred to “serious and significant shortcomings in the infrastructure sector.
“The infrastructure sector faced notable challenges. Our meeting with business stakeholders focused on guaranteeing fair competition, which is essential for achieving high-quality results and efficient costs,” stated the Prime Minister of Georgia.
According to the Prime Minister, crucial negotiations are held with foreign companies regarding significant strategic facilities for the country.
“I should note that over two to three months, all these negotiations concluded with maximum benefit for our state,” the Prime Minister said and added that the government is working on new initiatives, which will also contribute to further accelerating economic development.
As the head of government noted, there are several sectors, such as energy, where additional efforts can be made.
“We experienced a certain slowdown in the energy sector, a trend observed over several years. However, thanks to the measures we have already implemented, we believe that energy development will be accelerated significantly in the coming years. There were problematic practices in many areas, notably the resale of permits,” Irakli Kobakhidze stated, promising to resolve all these problems, ensuring that companies operating in the energy sector have the maximum support needed.
The Prime Minister also said that despite currently leading in the region and Europe, Georgia sees substantial potential for even greater progress. He also mentioned ongoing efforts to develop international relations.
“A very productive visit took place from the United Arab Emirates, during which we discussed several promising joint projects, many of which are already underway. We have agreed on a USD 6.6 billion investment by the EMAAR Group and Eagle Hills in Georgia, which will further contribute to economic development and growth. Additionally, we discussed several other exciting initiatives with our partners. We believe that successful cooperation will expand across many areas,” added Irakli Kobakhidze.
Irakli Kobakhidze referred to the latest data published by the European Bank for Reconstruction and Development (EBRD), which indicates that Georgia maintains first position in terms of economic growth.
“At the beginning of the year, there were negative forecasts, and a negative campaign was deliberately conducted regarding economic issues, which was essentially given some foundation by December’s slight decline; economic growth fell by several percentage points compared to forecasts due to political events.
However, since January, we have succeeded in restoring previous growth trends. This year, we have once again achieved a robust 8% economic growth, making it the highest in Europe and the broader region.
Additionally, according to the latest data published by the EBRD, Georgia maintains first position in terms of economic growth. Our primary goal is to sustain this positive trend.
We also drew comparisons with previous cases, notably contrasting our economic growth with that of Moldova.
Last year, it was stated that we had increased the gap with Moldova by USD 8 billion over three years; over four years, the difference in economic growth between Georgia and Moldova exceeded USD 11 billion. This demonstrates that Georgia has a sound economic policy. We maintain low levels of corruption and are recognised not only within the region but also surpass several European Union countries in this regard. We have strong institutions, and it is precisely this strength that sets us apart from those countries whose economic growth remains significantly lower than ours,” declared the Prime Minister.
