Contemporary Trends in the Georgian Economy
Contemporary Trends in the Georgian Economy

Summary/Abstract: The paper explores key contemporary trends in the Georgian economy.Specifically, it examines economic growth, the current state of various economic sectors, employment and unemployment dynamics, foreign investment flows, trade-related challenges, international reserves, external public debt, remittance patterns, inflation, poverty, and other relevant issues. According to the study’s conclusion, the Georgian economy in the post-pandemic period is marked by a positive growth trajectory. More specifically, the following trends have been identified: the overall GDP volume – particularly in the tourism sector– has nearly returned to pre-pandemic levels; GDP per capita has risen sharply; employment has increased, including in the private sector, though not substantially; inflation has declined; absolute poverty has decreased; and unemployment has dropped significantly. Foreign Direct Investment (FDI) has remained relatively stable, primarily due to reinvestment. Remittances continue to play a vital role in supporting the population. Exports of goods (largely driven by re-exports), trade turnover, trade in services, and the traditionally problematic trade deficit have all increased. The ratio of external public debt to nominal GDP has declined, and international reserves have grown. The national currency exchange rate remains stable. Looking ahead, key challenges for the Georgian economy include sustaining high economic growth; boosting investment in the real sector and generating new employment opportunities; enhancing the production of competitive domestic goods; promoting exports and import-substituting industries; expanding and diversifying export markets; further reducing poverty and unemployment; maintaining low inflation and currency stability; and strengthening mutually beneficial relations with neighboring countries,particularly the European Union.

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