“Our economic growth is higher than prices,” – this is how Deputy Minister of Finance Giorgi Kakauridze responded to a question regarding rising prices of medicines and food in the country.
According to him, the higher the economic growth, the more it offsets the pressure caused by inflation.
“Unfortunately, the state depends on imports for food. Therefore, changes in international market prices are reflected in the prices of food in Georgia. We are not a major producer of medicines, and these are also imported, as you probably know, so prices in the market are determined accordingly…
For food and medicine prices to increase, it is necessary for our economic growth to be high. Our economic growth is higher than prices. Therefore, the higher the economic growth, the more it will offset the pressure caused by inflation.
Over the past two years, inflation was significantly below the target. This year it increased and exceeded the target, but the National Bank is implementing policies that will allow inflation to return to the target next year. A zero inflation rate is impossible for the country’s development and would not be appropriate,” Kakauridze stated.
When a journalist asked him to explain in simple terms for people who are wondering whether to buy bread or medicine, Kakauridze answered: “Both.”
When asked, “If people don’t have enough money to buy both, what should they do?” he responded that economic growth should provide them with the money to afford both.
“Therefore, economic growth must provide the money that allows people to buy both [daily].
For those who cannot afford this, social programs exist, which are also included in the budget. Accordingly, the population category facing this problem will receive support through various programs, such as social assistance, chronic medication programs, etc. These initiatives are financed from the budget. Otherwise, when people have the ability to work, they should work, and the deficit in the labor market should be filled by our population,” Kakauridze stated.
