Georgian PM emphasises ‘peace for greater prosperity’ and European integration

Georgian Prime Minister Irakli Kobakhidze stressed the importance of peace for the country’s economic prosperity and European integration in an interview with the Imedi TV channel on Monday, telling the channel that the government must do “everything to improve the quality of well-being” of citizens.

Kobakhidze reflected on the economic challenges Ukraine faces amid the ongoing war and emphasized the impact of war on economic growth.

“You have seen what the war has brought to Ukraine – loss of tens of thousands of lives, serious humanitarian crises and displacement of 10 million people. Moreover, Ukraine’s economy has suffered a 30 percent decline in the first year of the conflict, which is a picture (of Georgia) of the 1990s. The war has not only stopped economic growth, but also caused a serious economic crisis,” he said.

Drawing parallels with Georgia’s experience, the prime minister attributed the country’s “sustained” economic growth to “12 years of uninterrupted peace” even amid global and regional crises. He noted that despite challenges such as the 2015-2016 war in Ukraine and the Covid-19 pandemic, Georgia had managed to “triple the economy” and expand its budget, attributing this success to preserving peace.

The budget for the coming year will be three times higher than in 2012. Sustainable peace is an important factor in stimulating economic growth. If we had followed the proposed scenario of the opposition, it would have resulted in an economic crisis, a significant downturn and other serious problems,” Kobakhidze claimed.

The Prime Minister also said that reaching a certain level of prosperity is a condition for joining the EU.

Here too, the situation is misrepresented. They claim that a country must first become a member of the EU in order to receive economic aid. However, the reality is exactly the opposite for those familiar with EU enlargement policy. A country must reach a certain level of prosperity before it is allowed into the EU. This is an important aspect of EU policy,” he said.

Kobakhidze stressed the need for “rapid” economic development to “catch up with European standards” and maintain current growth. He said the ruling party’s program for the upcoming parliamentary elections would “cover all issues,” with a “significant focus” on the economy and economic progress.

Highlighting Georgia’s recent economic growth, the prime minister said the country has experienced “rapid” economic expansion over the past three years, with an average increase of 9.7 percent between 2021 and 2023.

According to the data of the first five months of this year, our economic growth is 9.3 percent. These statistics place us at the top of Europe,” Kobakhidze said.

He also stressed the importance of attracting investment and completing ongoing infrastructure projects to sustain this growth, citing the construction of a Tbilisi-Batumi highway connecting the capital to the Black Sea city, road construction, railway development and plans for a new international airport in Tbilisi, which is expected to handle 19 million passengers.

The head of government acknowledged that Georgia’s economic growth is still below the European average, but expressed his determination to “accelerate development” to achieve a per capita income “comparable to that of European countries” by 2030.