The Economic Council’s meeting at the Government Administration today was chaired by Georgian Prime Minister Irakli Garibashvili.

The members of the Economic Council were briefed by the Head of the National Competition Agency, Irakli Lekvinadze, on the situation with reduced fuel prices, and concrete steps in this direction were reviewed. It was noted that fuel prices in February dropped by 0.3-0.4 GEL on average. The conversation touched on the situation with dropping food prices and the draft fair trade law, on which the Ministry of Economy and Sustainable Development is working following the instructions of the Head of Government. It was pointed out that, importantly, prices must drop and basic food commodities should not be sold at unreasonably high margins.

The discussed topics included the process of development of the country’s spatial planning. The Economic Council’s participants reviewed the process of technical task development.

The meeting’s participants discussed the introduction of the mandatory Euro 5 emission standard limiting the import of cars lower than the Euro 5 standard beginning in 2024, and this, for its part, will apply to cars manufactured prior to 2013. The implementation of this initiative will make a tremendous contribution to reducing air pollutant emissions. It was noted that the country’s existing regulations stimulate the import of new cars, while the implementation of the new standard is important for improving air quality.

The conversation at the meeting also covered the process of gasification of the regions. The meeting’s participants discussed ongoing and planned measures in this direction.

The meeting’s participants also discussed the rehabilitation plan of resort areas and steps to be taken. The importance of resort development for the country’s economic progress and stimulus was underlined.

At the meeting, progress on large projects-actively developed by the Government’s economic team on the Prime Minister’s instructions-was also discussed. The discussed topics included the process of work on long-term plans for the development of Tbilisi and Batumi International Airports. It was emphasized that active work is underway on the development of Tbilisi International Airport’s infrastructure.

The Economic Council’s members also reviewed the Anaklia Deep-Sea Port’s construction project. It was noted that an international tender for the port’s construction had already been announced. On the Government’s decision, the port’s construction works will commence in 2023. The conversation touched on plans in the direction of the development of existing ports.

The conversation touched on the high indicators of economic growth. It was noted that the economic growth in January 2023 deserves special mention given the high market effect. As the meeting’s participants underlined, a high economic growth of 18% was recorded in January 2022 as well, and real GDP has grown by 8.4% compared to the same period last year.

The discussed topics included the positive rates of inflation in the country. It was noted that, in February 2023, the annual inflation rate made up 8.1%, consumer prices dropped by 0.3% compared to the previous month, while the annual inflation dropped by 1.3% compared to the previous month. Inflation in Georgia has already passed its peak; and, since May 2022, dropping inflation rates have been evident. Reduced prices compared to the previous month clearly demonstrate that inflationary pressure has dropped significantly.