Saakashvili: Georgian Economy Grows Rapidly

In an annual state of the nation address to the Parliament on February 14 President Saakashvili said that Georgia’s economy is “growing rapidly,” which will enable the country to overcome poverty by 2009.

“Today we are still a very poor state from the economic point of view, but we are on a path which will help us overcome problems… GDP is expected to reach USD 1670 per capita in 2006; in 2010 GDP will be USD 2400 per capita – this means that by 2009 Georgia will no longer be classified as a poor state,” President Saakashvili said.

He said that GDP growth was about 9% in 2005. “This is despite the fact that oil prices increased last year,” Saakashvili added.

The President said that the government privatized 816 facilities in 2005. “Total revenue from the privatization process last year amounted to GEL 522 million [USD 290 million],” he said.

Saakashvili also said that foreign trade turnout increased by 33% in 2005. “What is most important is that we increased export by 36% last year,” he added.

He said that reforms are planned in the customs system. “Hundreds of customs officers were arrested for bribery, but it still did not help. We need a new liberal customs code,” Saakashvili said.

He said that the government plans to cut the number of customs dues from the current 16 to 3. “Tariffs will also be reduced… This will trigger GEL 80 million less going to the budget but this will be a huge investment in the economy in a long-term perspective,” Saakashvili said.

He also said that the labor code, banking system, as well as bankruptcy legislation should also be liberalized.