H.E. Lasha Khutsishvili, Minister of Finance of Georgia took part in a session held within the framework of the Central and Eastern Europe Forum (Georgia Ministerial Keynote Interview) in Vienna, Austria today.
In his address, the Minister of Finance of Georgia spoke about the macroeconomic stance and fiscal indicators in the country.
As he noted, Georgia’s economic growth significantly exceeds that of European countries, which is the result of the structure of the economy, fiscal priorities and implemented reforms. Based on the results of the past 5 years, Georgia’s economy is among the fastest-growing in the world.
According to Lasha Khutsishvili, Georgia’s economy has demonstrated exceptional resilience to various types of shocks, while at the same time maintaining strong macroeconomic and fundamental indicators.
As he highlighted:
The average annual GDP growth over five years amounted to 9.3%;
Real GDP growth over five years reached 56%;
GDP per capita over five years increased from 5000 to 10 000 USD;
The budget deficit over five years decreased from 9% to 1.4%;
Public debt over five years declined from 60% to 34%;
The current account deficit over five years decreased from 10% to 3%.
Minister of Finance of Georgia stated that these results are supported by structural reforms, including prudent fiscal and monetary policies, which ensured macroeconomic stability and strong confidence from the private sector.
Among the key drivers of economic growth, the Minister of Finance of Georgia named the tourism sector (which has generated nearly 50% higher revenues compared to the pre-pandemic period), the financial sector, information and communication technologies and education, as well as the construction and logistics sectors.
“These are the sectors that have attracted the majority of foreign direct investment. Annually mobilized foreign direct investment in Georgia amounts to around 6% of GDP, which is significantly higher than the global and EU average”, stated H.E. Lasha Khutsishvili, Minister of Finance of Georgia.
He also placed particular emphasis on the importance of the 6.6 billion USD investment by the EMAAR Group for the country’s development.
As the Minister of Finance of Georgia noted, reforms implemented in the country in recent years have led to a significant increase in reinvestment by both local and foreign companies. According to him, the majority of foreign direct investment (FDI) originates from the European Union, the United Kingdom and the United States, accounting for 80% of total FDI.
“I believe these facts and figures provide a clear answer as to how Georgia’s economy is developing in this rather challenging geopolitical environment”, added H.E. Lasha Khutsishvili, Minister of Finance of Georgia.