Georgia’s nominal economy is expected to grow by more than 10% by the end of the year, creating room for pension increases beyond the indexation mechanism. Such a statement made today the Prime Minister of Georgia.

“As you know, the indexation rule is in effect, including for pensioners under the age of 70. Under this rule, a GEL 20 pension increase was envisaged, which falls short of our economic growth.

The nominal economy is expected to grow by more than 10% by the end of the year, and this economic growth gives us the opportunity to increase pensions beyond indexation. This is precisely what we took advantage of when making this decision.

We identified the resources to provide an additional GEL 25 increase, bringing the total pension increase to GEL 45 for pensioners under the age of 70. This will be reflected in the state budget, with an additional GEL 128 million allocated for this purpose in the supplementary budget.

This entails considerable expenditure, but increasing pensions remains one of our most important priorities.

We must not exceed the permissible threshold. Beyond a certain point, social spending directly affects the pace of economic growth and accelerates inflationary processes. We believe we are now maintaining the right balance within the framework set out in the budget. Even with the GEL 45 increase, we remain within the existing limits. This is important because, on the one hand, we are addressing the population’s social needs and increasing pensions, while on the other, we are supporting rapid economic growth. This balance must be maintained in the future as well”, - said Irakli Kobakhidze.