Enterprise Activities Clearly Illustrate Business Growth in Georgia this Year
“Enterprise activities clearly illustrate that in 2019 the business has increased in Georgia, which is due to the country’s economic stability, attractive investment and business environment, as well as the correct and consistent economic policy,” - this is how the Deputy Minister of Economy and Sustainable Development, Ekaterine Mikabadze commented on the statistics published by GeoStat on the activities of the business companies in the first quarter of 2019.
Ekaterine Mikabadze noted that the private sector is the main factor contributing to Georgia’s economic growth. Therefore, it is important that the positive trend is maintained and the increase in the turnover, output and employment in the private sector is recorded again.
According to the GeoStat, business turnover is increased by 27,5% compared to the same period of the previous year and amounts to 22,9 billion GEL. The business sector is increased by 9,0% and reached 9,5 billion GEL. According to the types of activity, turnover and output are increased in almost all sectors. Increase in trade (+ 8,9%) is the highest contributor to economic growth which is followed by processing industry (+ 6,1%), transportation and storage (+ 11,8%), art, leisure and entertainment (+29,7%) and professional, scientific and technical activities (+ 32,6%). Ekaterine Mikabadze also emphasizes the workplaces created by the business during the reporting period. In particular, the highest contributor to the increase of number of jobs are such sectors as trade (+ 8,4%), hotels and restaurants (+9,5%), health and social services (+4.1%) and transportation and storage warehousing (+3.8%).
“Government of Georgia is actively working on further perfection of the business and investment environment and increasing the competitiveness of the private sector, which will further contribute to the development of the business sector and employment growth,” – the Deputy Minister commented and added that the role of the SMEs in the economic growth process is of paramount importance. According to Ekaterine Mikabadze, recent statistics show that the steps taken by the government in support of this sector positively affect the development of the SMEs.
“We have had a comprehensive strategy for the SME development since 2016 and the reforms are implemented in accordance with the preliminary action plan. As a result, we see how the competitiveness of this sector is increasing,” – Ekaterine Mikabadze, the Deputy Minister of Economy and Sustainable Development said.
According to the GeoStat, the output of small and medium enterprises is increased by 13,0% in the first quarter of 2019 and in particular, the output of the medium size enterprises is increased by 8,3% and the output of the small enterprises – by 16,7%.