PM: overty rate today is three times lower than in 2020

Georgia’s economy was worth $16 billion in 2020 and is expected to reach approximately $43 billion by the end of this year, Georgian Prime Minister Irakli Kobakhidze said on the “Open Air” program.

“This is a very significant leap, which ultimately affects the average salary of the population. For example, the average salary was GEL 712.5 in 2012, when we were being told that the economy was booming. Today it is GEL 2,283, approximately GEL 2,300,” Kobakhidze said.

According to the prime minister, the unemployment rate has declined from 26.7% in 2012 to 13.9%.

He said economic growth had also been reflected in poverty indicators.

“In 2012, the poverty figure was 1.12 million. More than 1.12 million people in Georgia lived below the poverty line in 2012. Another interesting detail is that from 2003 to 2012, they managed to reduce poverty only from 34% to 30%. Since then, we have seen a radical change,” Kobakhidze said.

“Poverty stood at 30% in 2012 and was still 21.3% in 2020. Rapid economic growth has resulted in poverty today being three times lower than even in 2020, at 7.1%,” he said.

According to Kobakhidze, this was among the results of what he described as Bidzina Ivanishvili’s entry into politics, a democratic transformation and economic progress.

“If more than 1.12 million people lived below the poverty line, this year the figure is 280,000. The main thing is to maintain this pace. In that case, we can eradicate poverty over a four-year period. The 280,000 people who are currently living below the poverty line will also escape poverty,” Kobakhidze said.

He said Georgia had made progress in all areas, while identifying demographics as the main remaining challenge.

“The only direction that is very painful is demographics, where we have challenges and continue working on them. However, addressing the demographic issue is linked to many complex, including global, problems. Nevertheless, we are actively working on this as well,” he said.

According to Kobakhidze, economic growth is crucial for strengthening Georgia’s position domestically and internationally, improving the social conditions of the population, eliminating poverty and further improving migration trends.

“Only in the past two years have we seen a positive trend. Before that, we had a negative migration balance every year. More people were leaving the country than entering it. Only in the past two years, among Georgian citizens as well — foreigners are not included here — more people have entered or returned to Georgia than have left,” he said.

Kobakhidze attributed the change primarily to economic growth.

“If we continue developing the economy at this pace, we will have completely different figures in terms of migration, and we will continue to see progress in every other area. We will also have stronger positions in terms of European integration and so on,” he said.

“Economic development will remain one of our top priorities in the future as well,” Kobakhidze added.