Minister: Current Economic Growth is the Result of Implemented Reforms

Mamuka Bakhtadze, Georgia’s Finance Minister, commented on the January-April statistics issued by the National Statistics Office of Georgia (Geostat), according to which the estimated real Gross Domestic Product (GDP) growth rate in April 2018 amounted to 6.5% and the average estimated real GDP growth for the first four months of 2018 equaled 5.5%.

“The economic growth observed in April of the current year indicates that the reforms of the Government of Georgia are oriented to the growth of the country's economy,” the Minister stated.

Bakhtadze believes that the positive dynamics will be maintained throughout the year.

“6.5% is really a good indicator but the figures for the first quarter were quite interesting too. Accordingly, we expect a similar trend to continue to the end of 2018,” he said, adding that the government will continue reforms focused on facilitating small and medium enterprises (SMEs).

“For us, the government, high economic growth is very important…and we want the positive outcome to benefit each and every citizen,” he emphasized.

Bakhtadze also spoke about the 2017 data provided by Geostat, according to which almost 22% of Georgia’s population is under the absolute poverty line.

“One of the reasons for poverty today is that small and medium-sized enterprise share in our economy is small,” the Finance Minister stressed.

Bakhtadze believes that encouraging small and medium businesses with different methods is vital for the revival of the economy.

“The main objective of the government's economic policy is the defeat of poverty and, in parallel, to increase the share of small and medium business in the whole economy,” he added.

The average monthly income in Georgia was 1,016 GEL in 2017, while the average monthly salary was 1,069.1 GEL in the third quarter of 2017.

In April 2018, the estimated real growth, compared to the same period of the previous year, was posted in the following activities: Other community, Social and personal service activities, Transport, Financial intermediation, Trade, Manufacturing and Real Estate.

By Thea Morrison

04 June 2018 19:04