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Prime Minister of Georgia Irakli Kobakhidze Delivered Annual Report to Parliament

Plenary 26 Jun 2026
Prime Minister of Georgia Irakli Kobakhidze Delivered Annual Report to Parliament
At the plenary session of the Parliament of Georgia, Prime Minister Irakli Kobakhidze presented the annual report on the progress of the implementation of the Government Programme.

"Last year was a turning point for the Government's work in many respects. Exactly one year ago, personnel and institutional changes within the Government of Georgia were completed, marking the beginning of a new phase in the Government's activities. During the past year, the Government's governance system was qualitatively improved, which constituted the most significant transformational change in this regard. These personnel changes concerned the Government itself and its affiliated institutions. I would particularly like to emphasize that the Government Efficiency Department was established within the Government of Georgia. It is actively engaged in optimizing public expenditure. In 2025, as a result of the Department's work, state programmes and procurements worth GEL 115 million were reviewed, generating savings of more than GEL 67 million”, - the Prime Minister stated.

According to Irakli Kobakhidze, one of the Government's principal objectives over the past year was the complete eradication of corrupt practices, and this goal has been substantially achieved at the highest levels of government.

Speaking about economic development, the Prime Minister noted that Georgia's economy expanded by USD 3.9 billion last year and, for the first time in the country's history, exceeded GEL 100 billion, reaching GEL 104.6 billion.

He also stated that the country's average economic growth over the past five years stood at 9.3%, while economic growth for January-April 2026 reached 8.2%, demonstrating that the high growth rate has been maintained.

According to Irakli Kobakhidze, the International Monetary Fund forecasts that Georgia will record the highest economic growth among the countries of the region and Europe during 2026-2031.

As the Prime Minister noted, the average monthly salary increased from GEL 1,191 in 2020 to approximately double that amount five years later, which, he said, clearly demonstrates that economic growth is directly reflected in improvements to the population's social conditions.

"It is also very important to compare wage growth with inflation. Over the past three years, consumer prices in Georgia have increased by 6.4%, while food and non-alcoholic beverage prices have risen by 9.7%. During the same period, the average monthly salary increased by 47.9%. This means that inflation has remained at an optimal level, while average wage growth exceeded inflation by 7.5 times, which is of fundamental importance”, - Irakli Kobakhidze stated.

According to the Prime Minister, economic growth has also had a direct impact on poverty reduction, with the poverty rate declining to 7.1% in 2025, 2.3 percentage points lower than in 2024.

"At this pace, it will be possible to eliminate poverty in Georgia entirely by 2029, something that would have seemed unimaginable in 2012”, - the Prime Minister noted.

The Prime Minister also stated that foreign direct investment increased by 7.6% in 2025, reaching approximately USD 1.7 billion, while the loan dollarization ratio declined to 42.4%. He also emphasized the importance of maintaining the stability of GEL.

The section of the annual report devoted to economic development also covered foreign trade, tourism, energy, transport and logistics, agriculture and rural development, infrastructure, water supply, environmental protection, and other related sectors.

Addressing healthcare and social protection, Irakli Kobakhidze noted that one-third of the state budget is allocated to these sectors, reflecting their priority status.

According to the Prime Minister, total state budget expenditure on healthcare programmes exceeded GEL 2.2 billion, representing a record level of funding.

He further stated that, as a result of these programmes, average life expectancy has increased from 72 to 76 years.

The Prime Minister also noted that funding allocated for pensions increased by GEL 517 million compared to the previous year.

He further discussed reforms in higher and general education, as well as the construction and rehabilitation of educational infrastructure.

In his annual report, Irakli Kobakhidze also focused on defence policy.

"Work has commenced on the updated long-term development document, 'Defence Forces 2035'. Under the Total Defence approach, significant steps have been taken to strengthen the capabilities of the Defence Forces, the institutional framework of the Ministry of Defence, the military industry, international cooperation, and inter-agency coordination. The introduction of anti-armour weapon systems continued, contractual obligations related to the procurement of new air defence systems were implemented in stages, intelligence units continued to be equipped with modern and effective systems, existing artillery capabilities were modernized, and combat engineering capabilities were further enhanced. The Defence Forces received both cargo vehicles and light off-road transport. A large-scale project for the integration and development of unmanned and counter-unmanned systems continued. Military units were equipped with modern tactical radio systems. Cybersecurity monitoring systems were strengthened. Units received modern medical transport vehicles. “Delta” continued uninterrupted production and delivery of ballistic helmets and body armour to the Ministry. “Delta-Web” is continuing the development and testing of prototypes of unmanned aerial systems for various purposes. Construction and rehabilitation works were underway at 180 military facilities. The construction of modern-standard bases for the Special Operations Command and the Air Force and Air Defence Command has been completed”, - the Prime Minister stated.

Irakli Kobakhidze also spoke about the Ministry of Internal Affairs and the police, noting that significant qualitative reforms had been implemented over the past year.

Speaking about foreign policy, the Prime Minister stressed that every effort is being made to strengthen cooperation with neighbouring countries.

"We paid very important visits to our neighbouring countries—Azerbaijan, Armenia, and Turkey. We are also placing particular emphasis on strengthening cooperation with Central Asian countries. This is essential for enhancing both our economic potential and our political resources. Significant progress was also achieved in relations with China during the reporting period. A few days ago, we signed the Comprehensive Strategic Partnership Agreement with China, marking a new stage following the establishment of our strategic partnership”, - Irakli Kobakhidze stated.

He also underlined the importance of restoring the strategic partnership with the United States.

"We have repeatedly expressed our position publicly, including personally. Our goal is to restore the strategic partnership with the United States from a clean slate, based on a concrete roadmap. Developments in recent months give us reason to remain optimistic that this strategic partnership will be restored”, - the Prime Minister said.

According to Irakli Kobakhidze, relations with the European Union continue to face challenges; however, Georgia remains fully committed to fulfilling its obligations under the Association Agreement and the DCFTA.

"During the reporting period, we achieved fundamental progress in this regard. Georgia has already fulfilled 80% of its obligations to the European Union, including 81% of those arising directly from the Association Agreement. This reflects our consistent approach. Despite unfair treatment and numerous challenges, we continue to implement our commitments to the European Union”, - the Prime Minister stated.

He further emphasized the importance of Georgia's non-recognition policy, noting that it had been successfully pursued throughout the reporting period.

"Let me reiterate that safeguarding Georgia's sovereignty, independence, peace and stability, together with ensuring continued economic progress, will remain the foremost priorities of the Government of Georgia. We will remain uncompromising in the face of any attempt to undermine Georgia's national interests”, - Prime Minister Irakli Kobakhidze concluded.
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