“Our primary task is to sustain a high economic growth rate, for which all necessary conditions are in place. It is crucial to address the current situation in the country,” stated Irakli Kobakhidze, Prime Minister of Georgia, during a business association conference.

Kobakhidze highlighted the positive dynamics of economic growth over the past four years, reflecting on the challenges faced since 2012.

“It wasn’t always this way. After 2012, we endured two significant crises: the first linked to the war in Ukraine and the second caused by the economic impact of COVID-19, which led to a 6.5% contraction. From 2012 to 2020, our nominal economy in dollars decreased due to these and other global factors,” he explained.

The Prime Minister noted a shift in economic performance beginning in 2021, emphasizing an average growth rate of 9.7% from 2021 to 2023, with a similar rate recorded in the first seven months of this year.

“Unemployment has dramatically improved, dropping from 21.9% in early 2021 to 3.7% in the second quarter of 2024. During this time, we created 146,000 new jobs, and average wages have risen from GEL 1,256 GEL to over GEL 2,000. These figures reflect the success of our economic growth strategy,” Kobakhidze stated.

He further mentioned the country’s positive indicators in fiscal consolidation, noting a 12.5% increase in production output and a 10.3% rise in foreign direct investment.

“Fiscal metrics such as foreign debt, inflation, the current account deficit, and the budget deficit are all below target levels, providing a strong foundation for sustained economic growth,” he added.

Kobakhidze underscored that maintaining peace and stability is key to achieving optimal economic growth. He compared Georgia’s situation to Ukraine, emphasizing the severe consequences of conflict.

“I want to reiterate the importance of peace and stability. The breach of peace in Ukraine led to a 30% economic recession in the first year alone, causing significant social upheaval. Even Moldova has felt the effects, widening the economic gap between Georgia and Moldova by approximately $9 billion over the past three years,” he remarked.

“We are open to discussions on any topic directly related to economic growth, the business environment, and maintaining peace and stability in our country. Such dialogues are essential for maximizing our success,” concluded the Prime Minister.