2024-03-01
Needless to say, business plays a decisive role in economic development, Georgian Prime Minister Irakli Kobakhidze stated in his speech at the Conference of Georgia's Business Association during which prospects of the country's economy and rapidly developing sectors were discussed.
According to the Head of Government, Georgia has been enjoying rapid economic advancement for the 4th year in a row.
"Greetings, ladies and gentlemen! I would like to thank the Business Association, and its President, Mister Soso Pkhakadze, for organizing today's event.
"Needless to say, special, key importance in the country's progress is attached to government-business cooperation and business development. The country's economic development underpins the path to fulfilling our main objectives, be it overcoming poverty or unifying and uniting the country.
"Of course, business plays a decisive role in economic development. Although you are aware of economic development statistics, I would like to reiterate them nonetheless. For the 4th year in a row, Georgia enjoys rapid economic advancement. As you know, in 2021-2022, our economic growth reached double digits. Last year, our economy grew by 7.5%. And this year too we have very positive projections in this regard. You also know that we keep our external debt, along with the level of inflation, below target indicators, and the current account deficit has dropped below 5%. Last year alone, the numbers of employed citizens grew by 51,000, consequently rising to a record high. We also have a positive dynamic in the tourism sphere, where we have surpassed the pre-pandemic revenue indicator by 26%. Today, as you know, Georgia enjoys free trade with 45 countries, i.e., third of the world's consumer market, and-while the rates of many countries continue dropping-we maintain a record-high sovereign rating. All this, these and other statistics, illustrates that our country pursues an effective economic policy. We have a liberal economic policy, an effective liberal tax policy. All this undoubtedly promotes economic development and business advancement. Naturally, freedom of business is one of the key factors behind economic growth. We all remember the situation in this regard prior to 2012, under the previous authorities. Pressure on business was one of the main manifestations of the previous government's systemic crime. As you know, this attitude and approach to business changed fundamentally after 2012. It happened in 2012, when Bidzina Ivanishvili-who better than anyone understood and understands the value of business freedom-brought about a breakthrough in the country's development. You will probably agree that business is now not only free, but also enjoys broad support from authorities which naturally must continue," Irakli Kobakhidze said.
The Prime Minister drew attention to challenges, underlining the need to maintain close cooperation with business.
"Of course, challenges remain, and we are ready to rise to these challenges, in doing which we need to cooperate and coordinate with business very closely. For example, we need to further upgrade public services. Everything must be done to ensure that services to be provided by public structures to businesses are maximally fast and of high quality. This is one of the main challenges, and we need cooperation, coordination with business in this regard as well.
"As for corruption, as you know, we have excellent indicators in terms of reducing, combatting corruption. In this parameter, we are ahead of every EU membership candidate state, also some EU member states, though our ambitions are higher than this, as I pointed out in our Government Program. We want to be among Europe's leading countries in this criterion, that is, be on a par with Europe's leading countries, which is no easy task, though I believe that, with political will in place, it is quite feasible. Most importantly, corruption should not jeopardize, even to the slightest extent, the successful process of doing business.
"We must tackle one of the main challenges facing businesses and the economy, meaning human resource development. Business must be duly equipped with workforce, and this requires fundamental reforms in the system, field of education. Of course, this is not a complete list of our current challenges, though these are key matters, you probably would agree. We need continuous cooperation on these and other matters, coordination with business, so that the Government's decisions on each of these issues may be maximally rational and fit for the interests of business and economic advancement. We need new ideas from you in order to further step up economic development, upgrade Georgia's environment for doing business and investing in Georgia. We need counsel from and coordination with business, the Business Association on this too," the Prime Minister stated.
In discussing the new 4-year plan, the Head of Government underlined that it will be both ambitious and realistic.
"In a few months, we will present a new 4-year plan to the public. This plan will be both ambitious and realistic. We seek to qualitatively boost Georgia's economic, trade, and transit potential. To this end, large investments will be channeled into the development of the country's road, railroad, air, and maritime transport infrastructure. The state will actively support the development of manufacturing and export growth. In the same vein, the country's educational system and infrastructure will be empowered fundamentally. I will present very concrete plans in this regard as well.
"Reforms, changes will be carried out across various directions to contribute directly or indirectly to the development of business in Georgia, and also, directly or indirectly, to have a positive impact on economic advancement, business development, economic activities in Georgia.
"In conclusion, I would like to emphasize that no economic success can be achieved without peace and political stability. You all remember how things unfolded in the course of the past three years. There was a serious attempt to undermine Georgia's political stability and turn our country into a part of the scenario unfortunately taking place in our friendly country of Ukraine. Fortunately, our country, our Government have withstood pressure and managed to keep both the robustness of the state and peace in the country. This confirms that Georgia has strong institutions capable of unwaveringly, staunchly protecting national interests.
"Today our political team has solid positions and strong public support. Surveys conducted over the past year show that public support for our ruling team is 55-60%. Of course, these are party rankings, but all this in itself testifies to the population's strong support for the Government, authorities. The same surveys illustrate the reason behind all this. Two main factors underpin the population's overwhelming support for our team. One lies in maintaining peace, that is, the first factor, because people see what is happening around us, and there are numerous hotspots in the world. Under these circumstances, our country, notwithstanding serious risks, maintains peace. The other factor behind the population's strong support lies in economic growth, economic progress, which naturally reflects in the social conditions of the population. We can pledge most assuredly to both the public at large and business that we will surely keep peace, political stability, and high economic growth rates in the future. We discuss all this in order for you to have a sense of solidity. We do have all preconditions to continue caring for our country's progress and development in a stable and solid manner. As Prime Minister, I personally would like to reiterate to you our total commitment to openness and close cooperation with business, the Business Association," Irakli Kobakhidze said.
Within the scope of the conference, Soso Pkhakadze, President of the Business Association of Georgia (BAG), spoke about the outcomes of the 2019-2023 BAG Index, also business attitudes and expectations.
As part of the conference, representatives of Galt & Taggart reviewed macroeconomic indicators and economic sectors.
Within the scope of the conference, two panel discussions were also held, one dedicated to the macroeconomic situation and prospects, a sectoral review focusing on transport and logistics, tourism, and residential real estate, and the other revolving around FMCG, information technologies, and education. Representatives of both the authorities and the business sector participated in the discussions.
Press Service of the Government Administration