Tbilisi: Georgian economy minister Levan Davitashvili, on Thursday, stated that Georgia’s growth this year would exceed the estimates made by the international financial institutions, considering the crisis kicking in from the war in Ukraine. The main trends observed in the economy form the basis of the expectations of increased growth, said the minister while he addressed the parliament.
The Georgian government has forecast an 8.5 per cent economic growth this year, although international financial institutions have relatively optimistic prognoses. The International Monetary Fund has set the increase at nine per cent, and said that in the medium-term period between 2022-2027, Georgia would have the highest economic growth among regional countries and in Europe, of 5.6 per cent on average,” said Davitashvili.
Amidst the serious economic challenges rising from the Covid-19 pandemic, followed by Russia’s invasion of Ukraine, Georgia stood firm while maintaining a stable economy and continued the trend of double-digit economic growth, noted the economy minister.
Further, he added that 10.4 per cent growth last year and in the current year, 10.3 per cent double-digit trend has so far been recorded between January and August of 2022. According to him, the growth had increased the employment rate, with unemployment decreasing by four per cent in the second quarter, to 18.1 per cent.Â
The country has benefitted from the volume of direct foreign investments, which grew by 102% in comparison to the previous year, reaching $922.9 million within the period from January to June.
The share of the European Union in direct foreign investments has equalled 42.5 per cent,” he also noted.
The tourism sector, post-pandemic, exhibited positive growth trends. The minister said that the recovery of travel income compared to the pre-Covid period reached 94.6% between January-August and is estimated at $2.1 billion.
About inflation, Davitashvili said that “We clearly see the impact of high inflation on the lives of our citizens. In such conditions, it is very important to have a socially responsible policy and, through targeted social programs, help the groups who are most affected by the inflation”, Davitashvili said, noting the international dimension of the phenomenon on the back of the conflict in Ukraine.”
