Economy

Slowing economic growth, high deficit

Slowing economic growth, high deficit

Economic growth continues to slow down. 2024-2025 the rates of economic growth are significantly lower than the high indicators recorded in previous years, which were due to positive external factors - the inflow of people and capital, as well as re-exports. According to the forecasts of the RA government, the economic growth of RA will stabilize around 5.4%, which is also consistent with the forecasts of other institutions. The budget message states that in 2021-2026 under the conditions of the growth rate, it is possible to ensure the 7.0% economic growth target set by the government plan, because the average growth will be 7.2%. Meanwhile, it should be remembered that according to the plan of the RA government, under the conditions of a favorable external environment, the target is 9.0%, and in 2023-2024. the high economic growth (due to which the 7.2% average growth is actually formed) was due to positive developments for RA itself (inflow of people and capital, re-export, etc.). Therefore, the formed economic growth should either be considered from the point of view of compliance with the 9.0% economic growth target, or the actual economic growth rate of RA should be adjusted from the effects of one-time external factors, and then only compared with the 7.0% economic growth target. An improvement in the tax/GDP ratio is again included in the forecasts for 2026. with an expected increase of 0.4 percentage points, but its realism is under question. 2021-2024 during this period, the actual improvement of taxes/GDP was only 0.5 percentage points, while the budgets of those years and the MDP predicted similar increases for each year. Such ambitious indicators were also included in 2025-2026. in forecasts that carry a high risk of failure.

04.12.2025

Amid global tensions, Armenia and Georgia continue to develop their relations — Kavlashvili.

Amid global tensions, Armenia and Georgia continue to develop their relations — Kavlashvili.

Amid global tensions, Armenia and Georgia continue to develop their relations, Georgian President Mikheil Kavlashvili stated during a joint press briefing with his Armenian counterpart, Vahagn Khachatryan.

"I am pleased to host the President of the friendly and strategic partner country, the Republic of Armenia, in Georgia on an official visit. As you know, this is our second meeting this year. On April 29, I was on an official visit to the Republic of Armenia. I would like to take today’s opportunity to once again publicly thank the President for the warm reception," said the Georgian President, highlighting the strategic partnership established in 2024.

"I am pleased to note that 2025 has been particularly productive in terms of deepening ties between our countries. The results achieved within the framework of the strategic partnership clearly demonstrate the effectiveness and scale of our cooperation," stated Mikheil Kavlashvili.

According to him, the multifaceted cooperation between the two countries is exemplary.

"Georgia and Armenia have lived side by side for centuries, coexisting harmoniously. The centuries-old relations between our countries, based on mutual respect, trust, and strong friendship, have never been limited solely to geographical proximity. In this process, shared values and vision that unite our peoples are extremely important: the protection of statehood, national identity, and cultural uniqueness, which is a top priority for both Georgia and Armenia and provides a solid foundation for even closer partnership. The multifaceted cooperation between our countries is truly exemplary. Within the framework of active bilateral relations, Georgia and Armenia also cooperate effectively on multilateral platforms," emphasized Mikheil Kavlashvili.

The Georgian President expressed gratitude to his Armenian counterpart for Armenia’s support of Georgia’s territorial integrity.

"In this context, the unwavering support of Georgia’s territorial integrity by the Armenian state is especially important, for which I would like to express gratitude to your country, Mr. President, on behalf of both myself and the Georgian people," Kavlashvili stated.

According to the Georgian President, under the tense global situation, Georgia and Armenia continue to develop political, economic, and international relations.

"During the meeting, I noted that, given the rapidly changing geopolitical situation, maintaining peace and stability in the South Caucasus remains increasingly important. It is necessary to emphasize that, under the tense global situation, we continue to develop political, economic, and interpersonal ties," said Mikheil Kavlashvili.

19.11.2025