2016-06-06
Based on the data of the first quarter of 2016, the number of persons employed in the business sector increased by 5.9% and amounted to the 577 thousand people. Respective figure indicates that business sector has employed additional 32 257 people throughout the first 3 months, - this indicator was published by the National Statistics Office of Georgia and welcomed by the Prime Minister.
As the head of the Government noted during today's Cabinet Session, the sectoral analysis demonstrates that the highest growth was recorded in the agriculture industry and exemplifies the results of Government's deliberate policy.
"We have to note the improved business climate. Based on the data of first quarter of 2016, the most important growth was recorded in the construction industry. According to the data reflecting the results of the first quarter, the amount of produced goods has increased by 44%. This is caused by performing large-scale works in state (such as highways, internal roads, hydroelectric plans) and private (such as multifunctional residences, offices, hotels, main communication lines and other infrastructures) sectors. It is vitally important, since each percent in this sector is quite significant in terms of employment," - Prime Minister noted.
Pursuant to the Prime Minister, the positive trends are visible in terms of growing volumes of products manufactured by business sector - in the first quarter of 2016 it increased by 15% as compared to the similar indicator from the previous year and amounted to 6.5 billion USD. The turnover of business sector has increased by 15.4%.
As for the economic growth, in April 2016 it amounted to 4.3% and 2.8 in the first quarter. Pursuant to the Prime Minister, significant activation of the economic growth is visible as a result of attitude of investors and improvement of expectations.
"As a result, investments and demand increase. Among the various sectors, the construction industry contributed to the growth of economy at the highest level. The activity in this field was high due to the state funded projects in terms of Ministry of Infrastructure as well as the private sector. The improved attitudes of the economic actors is obvious in terms of stabilization of the exchange rates of GEL. Banks have decreased their turnover of foreign currencies, which implies that abundant purchases and sale of foreign currencies is restricted," - Prime Minister elaborated.
Furthermore, the head of the Government noted that the tax incomes in the first five months of 2016 have increased by 8.3% as compared to the previous year and the budget spending share is positive. This issue remained to be problematic till recently.
Pursuant to Kvirikashvili, fiscal stimulation in the beginning of the year was much needed and it is welcoming fact that there are fewer problems in this area throughout the first 5 months of the year. Limitation of January-May spending to 37.8% of the planned annual spending is a positive sign.
"I consider that internal as well as external investors will perceive these positive data applicably and their expectations will be relevant. Investments from inside and outside the country will increase since we have developed and the Parliament has adopted an important package of tax liberalization that will make Georgian economic environment even more attractive starting from January 2017," - Prime Minister noted.
Prime Minister's Press Office