Deputy Economy Minister: EU Commission report highlights Georgia’s economic growth, sound policies, declining unemployment

Georgian Deputy Economy Minister Vakhtang Tsintsadze on Monday said that the European Commission’s latest economic report underscored Georgia’s impressive economic performance, driven by robust growth, effective fiscal and monetary policies, and a declining unemployment trend.

Commenting on the European Commission's Spring 2025 Economic Forecast - which includes assessments of both EU member states and candidate countries - Tsintsadze noted that the report specifically highlighted Georgia’s outstanding economic results in 2024.

“The report clearly states that Georgia experienced very strong economic growth in 2024, reaching 9.4 percent. It also emphasises the country’s effective economic and monetary policy, which contributed to maintaining inflation at low and below-target levels. Moreover, the report underlines the continuing trend of decreasing unemployment. It also assesses the steps Georgia has taken toward fiscal consolidation and the progress made in that direction”, Tsintsadze said.

He further noted that the European Commission projected 6 percent economic growth for Georgia in 2025, which was twice as high as the average among other candidate countries.

The official also added that Georgia’s economic growth in 2024 had been three times higher than that of other EU candidate states.

“We expect the trend of high economic growth in Georgia to continue through 2025 and 2026 and to surpass the forecasts of various financial institutions”, Tsintsadze concluded.

The European Commission on Monday published its Spring 2025 Economic Forecast, which stated that “following another year of very strong growth, Georgia’s economic activity is projected to decelerate but remain robust at 5-6 percent in 2025 and 2026, partly reflecting positive spillovers from Russia’s war of aggression on Ukraine”.

Growth is expected to continue to be driven by domestic demand, especially by private and government consumption. Inflation is set to pick up temporarily due to the pass-through from wage increases and demand pressures, before returning close to the central bank’s target. The current account deficit is projected to widen, driven by the increasing trade deficit.