Economy Minister Says Poverty Rate Still High in Georgia
Giorgi Kobulia, Minister of Economy and Sustainable Development of Georgia, says that poverty is one of the main challenges the government is facing, adding the poverty rate still remains high, despite a decrease of 10%.
“Although the current statistics show that the poverty level decreased by 10% compared to 2013, the fight against poverty remains one of our biggest challenges and main priorities,” he stated during the presentation of the annual report at the sitting of the Parliamentary Committee of Branch Economy and Economic Policy on December 25.
Kobulia said that poverty level was 40% in 2010, while in 2018 the parameter was fixed at 20% and poverty was cut by half.
“We still have a 20% poverty rate. The rate of poverty reduction was low over the last two years and we need much higher rates to beat it,” he noted.
The Minister noted that the unemployment rate is also decreasing in Georgia but also at a slow pace.
“Like poverty, the unemployment reduction rate is low. While in 2015 the unemployment rate equaled 15%, in 2016 it was 14% and in 2017 – 13.9%. This shows a decline, but it is not enough”, he said.
He noted that every year 30-40 thousand new jobs are created in the country.
“In 2017, 41,000 jobs were created in the business sector. We want to increase this indicator to 60,000 jobs in the future,” he said, adding that although the Georgian population amounts to 3.7 million, there are many people who cannot find jobs.
“Of 3.7 million people, only 2 million people are able to work, so they are our labor force. The rest are children under 15, pensioners and people who refuse to work, including housewives. Our aim is to involve some of these people in our economic activities,” the Minister said.
He went on to note that Georgia’s economic performance is much better than that of other countries in the region.
“The International Monetary Fund forecast that Georgia will be the leading country in the region over the next five years, up to 2023. Our forecast is 5% [growth],” Kobulia said.
He also spoke about the deficit of electricity expected in Georgia, adding that to balance this, the construction of new power plants is needed.
“Within the framework of getting closer with the EU and in general, we have an ambitious plan in the direction of electricity and energy market reform… Apart from main hydro power plants we plan the construction of medium and small HPPs that will help Georgia to fill the electricity deficit,” he said.
The Minister also spoke about the need for more investments in the country.
By Thea Morrison
Image source: Ministry of Economy