On April 24, 2012 was held the meeting of the Georgian Government. The agenda included 111 items.
Before starting the meeting the Prime Minister of Georgia, Nika Gilauri, spoke about the first quarter data. Here we present the Prime Minister's speech:
"Before discussing the issues of the meeting I would like to provide the ministers and the public with information on the first quarter data. We have not got the final figures yet. Analysis of the results is in progresss now but according to the preliminary data, growth of Gross Domestic Product in the first quartert as compared with the last year was 6%. This is quite good and high figure, especially if we take into consideration today's world economic problems.
We had foreseen 5% growth in the budget. It should be noted that February was quite severe due to much snow and frosts. Correspondingly, economic activity of February was comparatively lower than we had determined. In spite of this, 6% economic growth is quite a decent figure. This is an interim measure and presumably it will still rise a bit, when we have final figures.
As for inflation, March in comparison with the last year March was negative, that is we had 2% deflation. It means that in the mean the prices have been reduced by 2% as against the last year March, if we consider the prices of this year March. It once more means that at the international markets the prices are reduced. And reduction of prices at the international markets gave rise to deflation in Georgia. We remember that last year we had quite high inflation background. In the first quarter there was 10-11% inflation. And then also we explained to the public that the prices of food products at the international markets were increased and accordingly, it affected Georgian economy as well.
And it happened exactly this way., The prices have been reduced at the world markets and this has resulted in that the first quarter is deflationary and there is 2% decline in prices. These are basic macroeconomic parameters of which I wanted to inform the public. We are proceeding with the analysis of the first quarter results and in the near future we'll let you know about more other data with regard to the world trade and other macroeconomic parameters."
Prime Minister's Press Service