MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Levan Davitashvili presented the country's main economic trends and perspectives to the members of the 11^th convocation Parliament's Finance and Budgetary, Sectoral Economy and Economic Policy, Agrarian Affairs, Environmental Protection and Natural Resources, and Regional Policy and Self-Governance Committees.

At the joint sitting of the parliamentary committees, they discussed the issue of expressing confidence in the government and the government program "Towards Europe with Peace, Dignity, and Prosperity 2025-2028." As the candidate for the Minister of Economy and Sustainable Development noted in his speech, the positive economic trends observed in the country over the past few years continue.

"According to the data for January-September, economic growth amounted to 9,9%. Parallel to high economic growth, Georgia has a low inflation rate – 0,3% in October of this year. The trend of reducing unemployment continued in the third quarter of 2024 and averaged 13,8%. As for poverty, last year the share of the population below the absolute poverty line decreased to a historical minimum of 11,8%, and in just three years, more than 350 000 people overcame poverty. However, despite this positive dynamic, poverty remains a significant challenge" – Levan Davitashvili said.   

Speaking at a joint sitting of the parliamentary committees, Levan Davitashvili emphasized the ongoing and planned reforms and also spoke about the prospects and forecasts for economic growth in the next few years. According to Levan Davitashvili, by 2028, the gross domestic product will exceed 130 billion GEL, and GDP per capita will exceed 35 000 GEL (13 000 US dollars).

As the ministerial candidate noted, Georgia currently has one of the most liberal foreign trade policies in the world. In 2023, compared to 2019, goods exports was increased by 60% and trade turnover by 63%. According to Davitashvili, the government continues to diversify export markets, which will contribute to the availability of Georgian products on international markets and the growth of the country's economic potential. As Levan Davitashvili stated, a Free Trade Agreement with South Korea will be signed in 2025, and negotiations with India, Israel, the Gulf Arab states, and Serbia will continue.

Regarding the support for business development, according to Levan Davitashvili, within the framework of the state program Enterprise Georgia, 700 new enterprises were created, and 800 enterprises were expanded and re-equipped. According to the ministerial candidate, in order to support and develop production, state business support programs will be expanded in the coming years, and the total funding of the programs will exceed 1,5 billion GEL in the next 4 years.

Regarding the growth dynamics in the innovation and technology sector, Levan Davitashvili informed that state-funded startups have already generated over 500 million GEL in revenue and created nearly 4000 new high-tech jobs.

"Currently, there are over 120 international IT companies operating in the country, employing more than 10,000 people. Starting from 2025, a completely new, large-scale acceleration program will be launched, which will ensure the training and financing of 160 startups annually," – Levan Davitashvili said.

The candidate for the position of Minister of Economy and Sustainable Development spoke about the tourism sector at the committee hearing and noted that tourism revenues in 2023 reached a record high of 4,1 billion USD. Levan Davitashvili informed that tourism revenues in 2024 are expected to reach 4,4 billion USD. Moreover, with the aim of developing the country's resorts, the potential of over 200 resorts and tourist destinations has been studied, and over 60 tourist-attractive locations have been selected.

"As a result of the activities carried out by the government, tourism revenues will reach 6,4 billion USD by 2028, and the number of international tourist visits will increase to 11 million," – Davitashvili noted.

Talking about the energy sector, Levan Davitashvili named the main goals of the government's energy policy as maximizing energy independence and energy security. According to the ministerial candidate, active work is underway to develop renewable resources, both in terms of hydro, wind, and solar power plants.

The gasification and electrification of the country's regions was another priority direction in Levan Davitashvili's speech. He stated that the gasification and electrification of villages in various regions of Georgia that do not have gas or electricity will continue, and gasification works will be carried out in more than 600 settlements in the next 4 years. Ultimately, the share of households with access to gas will increase to 95%.

The ministerial candidate highlighted the Black Sea Submarine Cable project, scheduled for completion in 2030, which will enable Georgia to directly export electricity to European countries.

Full utilization of the country's transport and logistics potential was another issue the ministerial candidate emphasized. According to Levan Davitashvili, efforts to attract additional cargo to transport routes passing through Georgia, including the Middle Corridor, will intensify in the coming years. To strengthen transport links between Georgia and the European Union, work will continue to add direct ferry lines on the Black Sea to Bulgaria and Romania and increase the frequency of traffic.

Levan Davitashvili explained that the process of selecting a private partner for the development of the crucial Anaklia Deep Sea Port project is in its final stage. The port is expected to start operating by 2029 at the latest. Upon completion of the first phase, the port's capacity will be 600 000 TEU per year, with a total investment of 600 million USD.

The ministerial candidate also discussed the railway modernization project, which, upon completion, will increase the railway's annual capacity from 27 million to 48 million tons, and with the installation of an automatic block system, up to 100 million tons if needed. The construction of the Baku-Tbilisi-Kars railway section, an integral part of the Middle Corridor, is in the final stage.

Talking about another important transportation sector, aviation, and its development dynamics, Levan Davitashvili noted that 2024 was a record year in terms of incoming airlines and new flight destinations. In recent years, the number of passengers transported by regular and irregular flights has significantly increased, exceeding 6 million in 2023.

"2024 was a record year in terms of incoming airlines and new flight destinations. After a multi-year pause, Austrian Airlines and British Airways returned to the market. In parallel with the growth of passenger traffic, the development of Georgian airports is ongoing" – Levan Davitashvili said.