Georgian PM: Georgia’s real economic growth averaged 9.3% since 2020

Georgian Prime Minister Irakli Kobakhidze said on Saturday that Georgia’s real economic growth has averaged 9.3% since 2020 and that the country currently ranks first in Europe in terms of economic growth.

Speaking on Imedi TV’s Open Air programme, Kobakhidze said economic growth plays a decisive role in the country’s social conditions, migration trends and foreign policy.

“Since 2020, our real economic growth, which excludes inflation, has averaged 9.3%. We are maintaining a high pace this year as well, with growth standing at 7.6% according to the first eight months’ data. Based on these figures, including this year’s figure, Georgia ranks first in Europe in terms of economic growth”, he said.

According to the Prime Minister, the economy ultimately affects a range of factors, including the country’s foreign policy positions and the social conditions of its population.

“Our situation was extremely difficult if we take the 1990s, for example. Economic conditions are also a factor driving migration. The main factor behind migration is precisely the economic situation. For example, you may remember that many people moved to Greece in the 1990s. If you look at the statistics now, more people are returning than leaving. In fact, people are no longer moving to Greece to live, and many are returning. There is a simple reason for this”, Kobakhidze noted.

“If we look at the data from the 1990s, specifically GDP adjusted for purchasing power, which is what is actually used to measure differences in people’s social conditions between countries, Greece was nine times ahead of us in the 1990s”, he continued.

He added that, according to the International Monetary Fund’s 2026 forecast, the gap between Georgia and Greece would be around 40%.

“Under such circumstances, the laws of physics apply: people move to live in countries where the economic situation, and consequently the social conditions, are better. Greece was nine times ahead of us - these are International Monetary Fund figures for 1994, 1995 and 1996. Today, according to the IMF’s 2026 forecast, the gap is 40%. A 40% gap is minimal, and under such conditions, the incentive for a person to move from one country to another to live practically no longer exists”, he stressed.

Kobakhidze also compared Georgia’s economic position with those of Germany and France.

“Let’s take data from other countries. For example, if we compare ourselves with EU countries using the 2012 figures, Germany was 2.5 times ahead of us in terms of the population’s social level, France was four times ahead, and Greece was still 2.5 times ahead. According to the 2026 forecast, by the end of this year, the gap with Germany will be approximately twofold, and the same will be true for France. The gap with Greece will be 40%. This means that, if these trends continue, we will improve our economic position relative to other countries as well, particularly since 2020”, Kobakhidze said.

The Prime Minister said Georgia had also significantly improved its position in international rankings based on purchasing-power-adjusted GDP, moving from around 100th place in 2012 to approximately 70th today.

“If Georgia was somewhere around 100th among countries in 2012 according to this indicator - the key indicator determining this comparison - today we are around 70th. We have improved our position relative to other countries by 30 places. The important thing is to maintain this pace. You know that since 2020, our real economic growth, excluding inflation, has averaged 9.3%. We are maintaining a high pace this year as well, with growth standing at 7.6% according to the first eight months’ data. Based on these figures, including this year’s figure, Georgia ranks first in Europe in terms of growth”, he noted.

Kobakhidze also highlighted the increase in the size of Georgia’s economy, saying it had grown from GEL 28 billion in 2012 to nearly GEL 50 billion by 2020 and GEL 104.6 billion at present.

“Also, if we compare 2012 and 2020, our economy was worth GEL 28 billion in 2012, and by 2020 it had reached nearly GEL 50 billion. According to today’s figures, it stands at GEL 104.6 billion. At this pace, it will certainly exceed GEL 115 billion this year and approach GEL 120 billion”, Kobakhidze concluded.