Giorgi Kvirikashvili: Significant economic growth recorded in the ongoing period of 2018 Print Version

2018-06-08

We are all very pleased that a significant economic growth rate has been recorded in the ongoing period of 2018. A few days ago, the economic growth indicators for April 2018 were published, showing a 6.5% growth, while the average indicator of the economic growth in the first four months is 5.5%.
It is very important that the private sector plays a leading role in economic growth. Similar to the past few years, the first quarter of 2018 continues quite positive trends in terms of turnover, production, and employment growth in the business sector.
The business sector turnover in the first quarter of 2018 has grown 18.6% year-over-year to make up 18 billion GEL. Most importantly, the turnover growth of SMEs made up 20%. I would like to say that recently special emphasis has been placed on SMEs, and this trend will continue surely. We really want to see much higher growth rates among SMEs, because this very direction makes the results of economic growth felt by the public at large.
In addition, the turnover of large plants is up 17.1%.
The growing turnover in the business sector has a positive impact on employment. In the first quarter of 2018, the number of jobs grew 5.3%, and the number of jobs for hire is up 5.7%. Equally important is that, compared to the first quarter of 2017, an average monthly salary in the business sector is up 8% to make up about 1,100 GEL.

Production growth is present, and in many sectors we see the results of an unprecedented growth of tourist inflow. I would like to emphasize once again that the growing tourism trends have the greatest impact on the public at large. The state will do its best to invest greater effort in this direction. We are keeping last year's positive growth, and in the first five months of this year, the number of tourists is up 23.5%, which is a very important indicator. Revenues from tourism are up 28.4% in the first four months.
It is very important to provide our population with correct information about the fact that these are not mere numbers. These are positive trends reflecting in concrete people and concrete companies. Not everyone in Georgia is well-off today. When I mention these numbers, I always think how hard it is for some to take in these numbers.

I would like to reiterate that we went through the most difficult 2014 crisis caused by the military action and occupation in Ukraine, also a heavy crisis in Syria which has had its impact on the region and our largest trade partners, and caused devaluation.
The revenues of our population have grown, significantly surpassing inflation indicators, but the devaluation unfortunately caused the growth of national currency against the USD, which has had a serious negative impact on the economic condition of our population.
The fundamental fiscal reform, known here as the Estonian model and launched in January 1, 2017, was preceded by extensive preparation and study, including with the assistance of senior IMF experts, during which we analyzed Estonia's flaws, mistakes made throughout the implementation of this reform there, and we may say that we covered all the bases in terms of legislature through the introduction of proper changes.
We have cooperated extensively with the Parliament, with the engagement of the whole Parliament, especially the Committees for Finance, Budget, and Economic Policy.
As a result, we have not only overcome the crisis' effect but also have transformed this crisis within a very positive trend.
I repeat that we have yet to overcome poverty in Georgia, and it will take years, and it is true, but our current trend is the recipe and path to overcoming poverty.
It is very important for our population to have the right and realistic hope that we are on the right track, and that this path can make it possible for Georgia to defeat poverty once and for all.

Prime Minister's Press Office