Minister of Economy reviews current situation and plans

A hearing of Minister of Economy and Sustainable Development Natia Turnava was held at the Parliament on December 20. Turnava evaluated current trends in the economy and spoke about future visions.

She began her report by reiterating some of the goals she outlined when the Cabinet of Ministers was approved.

“The main objectives of our economic policy are to achieve the well-being of the population in the wake of sustained high economic growth while tackling poverty and unemployment remains the main challenges. We respond to these challenges through a united, coherent, coordinated economic policy and achieve significant results,” said Turnava.

She reviewed the current economic standing of the country, which, in her opinion, is distinguished with its sustainability.

According to the Minister, the country maintains macroeconomic stability and the tendency of improvement of fundamental parameters. She also spoke about inflation and its causes.

“As a result of the coordinated action of the economic team and the steps taken by the National Bank, in particular tightening the monetary policy, we have overcome this problem in the past year,” said Turnava. According to her, next year, inflation will return to its target indicators.

According to the Minister, relative to GDP, the share of foreign direct investment (FDI) is one of the highest in the region at 7%, which is about three times higher than the regional average, it’s also higher than in a number of countries in Eastern Europe.

According to her, the reinvestment component of FDI has doubled. “This means that trust from the investors towards our economic standing is growing. We will do everything for this tendency to increase next year,” noted the Minister.

She talked about the privatization process and large investment projects, as well as the importance of revitalizing the Tskaltubo resort in the Imereti region. Turnava also spoke about implemented projects and plans in the sector economy.

The MPs asked the Minister several questions regarding her review, which was identified as an insightful report by the Parliament Speaker Archil Talakvadze.

The questions centered on regional project gasification, drinking water and investment.

As Roman Kakulia, the Chairperson of Sector Economy And Economic Policy Committee said, the report very good, because it has a claim to comprehensiveness. He stressed the importance of indicators.

“While this [knowledge of indicators] is still being refined in our country, it would be my recommendation that at the end of the characterization of each sector we clearly identify the main challenge in that sector. In the next report, this will allow us to focus on what type of challenges still remain,” said Kakulia.

Aside from Turnava, the Parliament also heard a similar overview from the Minister of Education, Science, Culture and Sport of Georgia. Hearing of the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs is also planned in the near future.