It is always very important for us to hold meetings with representatives of the Business Association. as this gives us an opportunity to exchange views and information, which in turn helps the government in making future decisions, said the Prime Minister of Georgia in his address at the Conference of the Business Association of Georgia (BAG).

"Last year we had a similar meeting where we discussed economic development trends as well as the political situation, and I am pleased that a year later, we are still maintaining both stability and steady progress in all areas. The past four years have been remarkable in terms of economic growth, with an average annual growth rate of 9.4% in 2021-2024 - the highest rate across the entire European continent and the broader region. We are pleased that this year we have also managed to sustain a high pace of economic growth. Based on January-July data, economic growth stood at 8%, which is once again the number one indicator in Europe and our wider region”, - said Irakli Kobakhidze.

As he noted, at the beginning of the year there had been negative forecasts, with a deliberately orchestrated negative campaign regarding the economy, partly fueled by a slight decline in December, when actual growth fell a few percentage points short of projections due to political developments.

"However, starting from January we managed to return to previous trends, and this year we have again achieved high economic growth - an 8% rate, which is the leading figure in Europe and the broader region. According to the latest data published by the EBRD, Georgia continues to hold the top position in terms of economic growth. Our main task is to sustain this trend, and in this regard, cooperation with you [the business community] is of particular importance.

We made some comparisons in this respect, including with Moldova. Last year we said that in three years we had increased the economic gap with Moldova by 8 billion USD; over four years, the gap in terms of economic growth has exceeded 11 billion USD. This demonstrates that Georgia has a sound economic policy. We have a low level of corruption, standing out not only in the region but also surpassing several EU countries in this regard. We have strong institutions, and this is exactly what differentiates us from those countries that show much lower economic growth than Georgia.

This year, for the first time, we will surpass 100 billion GEL. By the end of the year, our GDP will exceed 100 billion GEL, and for the first time, GDP per capita will surpass 10 000 USD - a symbolic and important milestone for us.

Of course, maintaining this pace is essential for the country to preserve strong positions and to improve the living standards of our population. Economic growth affects broad layers of society. Employment has grown significantly: between 2022 and 2024, the number of employed people in our country increased by 185 000, while the average salary exceeded 2200 GEL, compared to roughly half that figure in 2021.

Also, for the first time since the 1990s, a single-digit poverty rate was recorded, amounting to 9.4% last year. Naturally, challenges remain in this area as well, but with the current pace and trends, we can already talk about the complete eradication of poverty in Georgia in the medium term.

These results have a concrete basis. We have a very sound economic policy, a liberal tax system, and free enterprise - which has been one of the major achievements since 2012 - and the state makes every effort to provide maximum support to business.

At the same time, proper management is crucial, and I believe that management within the relevant government structures is ensured at a high level", - said the Prime Minister.

He also highlighted the performance of the Lari exchange rate: "The stability of the lari exchange rate is very important. There were also negative forecasts in this regard in December-January. So-called experts were very active on this matter. They hoped that the exchange rate would exceed 3.10 GEL against the dollar, but as you can see, the data tell a different story, and since January the lari has appreciated by 0.15 against the dollar. Between January and August, the National Bank [NBG] replenished its international reserves by 1.5 billion USD - a record-high figure in our history. For this, I want to thank the NBG and its President, Natia Turnava. The effective work of the NBG is of key importance for sustainable economic development".

Irakli Kobakhidze also thanked the members of his government team.

"I want to thank the members of the government team, the economic team, and Mariam Kvrivishvili, Minister of Economy. Although we had a well-structured and functioning management system, there were many shortcomings. However, I want to say that over the past three months we have been able to resolve many issues and make better decisions. For example, there were serious shortcomings in state-owned enterprises (SOE), and as a result of the work carried out over these months, we managed to save 700 million GEL. This was partly achieved through staff optimization, which will save at least 60 million GEL annually in state-owned enterprises, and this figure will grow further. In addition, through cost optimization, we managed to save over 600 million GEL more, again only in state-owned enterprises. Of course, there were shortcomings in other areas as well, and through better management we were able to address them. With the Ministry of Economy, you have a strong and responsive partner, and you can reach out to the ministry or the minister personally on any matter, and I am confident every issue will be resolved as quickly as possible.

There were also very important negotiations with foreign companies regarding strategic assets for our country. I would like to note that within two to three months all these negotiations were completed to the maximum benefit of our state, and I especially want to thank the Minister for this. We are also working on new initiatives that we will speak about publicly later, and these initiatives will help accelerate economic development even further. I also want to thank Lasha Khutsishvili - an outstanding member of our economic team; David Songhulashvili, who leads agriculture, and our regional ministers, Rezi Sokhadze and Kakha Guledani", - stated Head of the Government.

He drew attention to the infrastructure sector, noting that there had been serious and significant shortcomings: "We had an interesting meeting with representatives of businesses involved in implementing infrastructure projects. We agreed on one thing: there will be fair competition, which should ensure both cost-effectiveness and improved quality of completed projects. I would like to thank Rezi Sokhadze for doing his utmost in this regard".

Head of the Government of Georgia also emphasized that there are a number of other sectors where even more can be achieved, such as energy.

"In the energy sector, there was a slowdown over several years. However, thanks to the measures we have already taken, we expect the development of energy to accelerate to the maximum in the coming years. There had been wrong practices in many areas - one of the main problems was the resale of permits, but that was not the only issue. Problems existed in many directions. I promise you that we will address all of them. Accordingly, companies operating in the energy sector will have the most favorable conditions to successfully carry out their projects.

Our task is to accelerate the pace of economic growth even further. Although we are in first place in the region and in Europe in terms of economic growth, we believe there is potential to move faster still, and we are doing our utmost to achieve this", - added Irakli Kobakhidze.

He also noted that work is underway to strengthen international partnerships: "A very important visit was held from the United Arab Emirates, during which we discussed a number of promising joint projects, work on which has practically begun. We have already agreed on an investment of 6.6 billion USD to be carried out in Georgia by EMAAR Group and Eagle Hills, which will contribute to economic development and further accelerate growth. At the same time, we discussed many other initiatives with our partners. We believe there will be successful cooperation in many directions".

Irakli Kobakhidze also addressed the political dimension, stressing that political stability is of key importance for business.

"We are doing our utmost to ensure political stability and calm in the country, and much has been done in this regard over the past years. Certain steps cost the country some short-term instability, but in the end, those very steps allowed us to stabilize the situation qualitatively. The Transparency Law was among them, which helped provide greater stability and reduce polarization. Unfortunately, opaque foreign funding had been actively used to artificially fuel polarization in Georgia. Thanks to this law, the degree of polarization has decreased, and radical forces no longer have the means to successfully pursue their agenda.

Today, the situation is calm. We are ahead of the municipal elections, which we expect to be held peacefully. The same goes for October 4, which, despite certain unserious announcements, will pass calmly, and the country"s peaceful and stable development will continue. Naturally, for both government and business, political calm and stability are of key importance. We are responsible for this and will do everything to provide you with a stable political and economic environment for your business activities. Consultations and cooperation with you are very important for us. Today provides a good opportunity for this, and in the future as well, we remain fully open to cooperation, consultations and receiving your advice. Once again, I confirm my respect and readiness for partnership", - concluded the Prime Minister.

At the BAG Conference, which focused on Georgia`s Economy: Macroeconomic and Sectoral Perspectives, the Association`s President, Soso Pkhakadze, presented the results of the BAG Index 2020-2025, outlining business sentiment and expectations. Within the framework of the conference, the Prime Minister of Georgia also took part in the panel discussion titled Open Dialogue Between Government and Business.