GDP per capita of Georgia. Life in Georgia

The standard of living in Georgia cannot be called high. The older generation of people, who perfectly remember the times of the Soviet Union, often look with longing at the once fraternal countries. Success or, conversely, failure is sometimes experienced as one’s own. And no matter how they try to escalate the situation, it is impossible to quarrel between peoples who once lived in perfect harmony. Today Georgia is trying to find its way. There are plenty of problems in this country, but they are gradually being resolved.

Panoramic view of evening Tbilisi

One of the pressing problems, along with unemployment, is prices in Georgia.

Many young Russian citizens do not have particularly warm feelings towards these neighbors.


In many ways, this situation has developed due to the picture in the media. For some reason, Russians are told that in Georgia they can get caught even for daring to think in Russian, although this, of course, is far from the case.

Many Georgians themselves willingly speak Russian, and one can only envy their sincerity and hospitality. What is presented almost as “Georgian Nazism” is often just a desire to preserve one’s own national identity.

Today, many cultural centers have been created in Georgia, where both Georgian and Russian art are actively studied. So tension exists only in the relations of those in power, and no one has yet canceled the friendship of peoples.

Economic situation

Unfortunately, today life in Georgia in 2020 cannot be called prosperous. According to the latest statistics, in terms of GDP per capita, Georgia is in last place in the region.

Dynamics of GDP growth in Georgia over the past twenty years

According to experts, these data indicate an almost critical situation as a whole.
One of the most serious problems of this proud and hospitable country is almost mass unemployment. , given the low standard of living, it is difficult, and staying in place is also not easy. Fortunately, today there are more and more entrepreneurs from Russia and other countries who are creating jobs.

The country's authorities invite good specialists in the field of IT and agriculture to cooperate. The latter is especially relevant, since the situation there is practically stalemate. Unfortunately, young people do not strive to become the “salt of the earth”, but mainly want to become a lawyer or economist.

Statistics say that today there are about 35 percent of people with official income. And this is if we take into account only large cities.

Detailed map administrative divisions of Georgia indicating all major cities

In small populated areas, including villages and towns, the standard of living is noticeably lower, and the situation is even more frightening. The Georgian province is disheartening with its poverty.

More than 70% of rural residents are forced to live from subsistence farming. According to some experts, the real Middle Ages reign there, when one product is simply exchanged for another.

It is noteworthy that the country's authorities do not consider them officially unemployed. Most high level unemployment is observed among young people aged 25 - 35 years. Unable to find employment in their homeland, many young people from other countries. But most older people often have an average stable income.

Pension issue

In 2020, according to the new law, the level of pension payments will be increased. This affected older pensioners.


Now people who have crossed the sixty-year mark will receive a pension in the amount of 160 lari, i.e. 68 US dollars. The last time the level of pension payments was increased was two years ago. At that time, the pension in Georgia was 150 lari.

The country's authorities note that very soon pensions in Georgia will be doubled. For this, according to experts, about thirty million lari are needed, which equals approximately 12.7 million US dollars per year. This point was provided for in the Georgian budget. To date, the number of people of retirement age has been increased by seventeen thousand people.

Statistics say that today the number of Georgian pensioners varies around 703 thousand people. Retirement age in Georgia begins at sixty-five years for men and sixty for women.

Salaries

Comparison table wages in Georgia with other CIS countries

At that time, the official income of a public sector employee did not even reach 100 US dollars. In 2020, wages increased slightly. Special attention was given to doctors and education specialists.

The average salary level is as follows:

1. Finance - 1477 GEL.
2. State management - 1046 GEL.
3. Transport sector - 875 GEL.
4. Industry - 843 GEL.
5. Construction sector- 812 lari.
6. Trade sector (retail) - 665 GEL.
7. Social services - 568 GEL.
8. Medical field - 508 GEL.
9. Catering and hotels - 480 GEL.
10. Agriculture - 364 GEL.
11. Education - 323 GEL.

The level has increased largely due to foreign investment in the economy.

Chart of dynamics of agricultural indices in Georgia

In 2020, many Russian and foreign companies.

Tax system

Today, on the territory of Georgia there are national taxes, which are:

• taxes on profits - fifteen percent;
• income tax- twenty percent;
• VAT - eighteen percent;
• customs taxes.

On the territory of the republic there are also local taxes. Today, property tax for various organizations is as follows:

• Georgian entrepreneurs undertake to pay one percent book value;
• foreign entrepreneurs undertake to pay one percent of the value of property located on the territory of the Georgian state;
• owners of organizations undertake to pay one percent of the value of key assets.

1. Young local potatoes cost one lari.
2. Cucumbers - from one to 1.2 lari.
3. Pink tomatoes - two lari.
4. Meaty tomatoes - 1.3 GEL.
5. Greens (basil) - ten tetri.

Baking cost

It's no secret that Georgia is famous for its amazingly delicious baked goods. Particularly popular is the legendary Georgian lavash, which can be served with barbecue or eaten as an independent dish.

In 2020 prices for bakery products look like this:

1. Lavash costs 0.8 lari.
2. Lobiani - one lari.
3. Khachapuri - 1.5 GEL.

Those with a sweet tooth can please themselves with delicious pastries, the price of which does not exceed 2 GEL.
The cost of the most popular sweet pastries among visitors is as follows:

Cheese cost

To visit Georgia and not try the legendary cheese is a real crime. Georgians often treat their guests to this particular product, the cost of which compares favorably with the price on the Russian market.

So, one kilogram of Suluguni cheese can be bought for 7 - 8 lari. One kilogram of imeruli cheese, which is somewhat reminiscent of feta cheese, can be purchased for 5 - 6 lari.

Restaurant in Tbilisi with mountain views

If a person who arrives in Georgia has free time and wants to save money, it is still better to cook food on his own.

Features of the transport system

Transport in Georgia consists of electrified railways and roads. Total length highways is 2700 kilometers.

On the streets of Georgia, right-hand traffic prevails. It is important to take into account the specifics of this country and carefully prepare for a road trip. Fans of road travel will probably be pleased to know that in 2020 all the roads are not just good, they are in excellent condition.

This is explained by the so-called road revolution, when old routes were significantly expanded and strengthened, and new roads were built in the mountains. A special contrast will be noticeable if you enter the territory of Georgia from Armenia. The condition of the roads there is close to critical.

Section of the road on the Tbilisi – Kazbegi highway

Today, a magnificent four-lane highway is being built in Georgia. Now the section of the route from Tbilisi to Gori is almost completed. It is planned to complete the highway to Gori.

Alas, sometimes it seems that the rules of the road are not written for everyone. Sometimes drivers resemble Bedouins on camels, who don’t care what color, green or red, the traffic light is on - the main thing is to turn. Of course, Georgia is far from the chaos that reigns on Indian roads, but the situation cannot be called rosy.

Pedestrians who strive to cross the road in any place, even the least suitable one, are also insufficiently organized. It is not uncommon, especially in provincial towns, for cattle to be driven across the roadway, despite traffic lights.

The lighting on the roads is often simply disgusting, which provokes emergency situations.


The situation with the so-called “gasoline chaos” continues to remain difficult, when fuel of rather questionable quality was sold on the roads.

Education

The Georgian education system was formed thanks to unique, original principles. The most famous center, which can safely be called the source of Georgian education, was created in the seventeenth century. Residents of Georgia even today treat the Gelati Monastery with reverence, which began functioning around the same time.

Alas, at the beginning of the twentieth century, most of the inhabitants of the republic were illiterate. It took a lot of effort and time to eliminate illiteracy, and by the beginning of the eighties this problem was solved. Today, the majority of Georgian schools (75 percent) teach in the state language. IN higher school There is 100% teaching in Georgian.

Modern computer class at the Georgian school

Today, schools and preschool institutions in the country are faced with one of the most serious problems - lack of funding. Difficulties in financing primarily hit preschool institutions. In this regard, in a relatively short period of time, the number of children attending kindergarten. The parents of the children were simply unable to pay the monthly amount of $14.

In recent years, private educational schools have begun to appear across the country. This cannot be called a positive factor, since the cost of education in private schools is not affordable for all residents of the country. However, municipal schools are not giving up.

They are actively looking for sponsors both abroad and in their home state. A rather complicated situation is observed in higher education. Structure of higher educational institutions strictly divided into commercial and government.

Building of the Georgian Technical University

The number of students seeking to enroll in private universities far exceeds the number of young people who have the opportunity to study in state universities. This leads to state universities opening licensed educational centers and providing services privately. This is especially true for economic and political specialties.

The country's authorities have found a rather original and bold solution. Today, new universities are opening, suggesting a founding partnership with Western colleagues. The key pitfall here is the lack of financial stability. That is, tuition fees will not only not gradually decrease, but on the contrary, over time it will be possible to observe its rather intensive growth.

In short, the education system is not experiencing the best better times. We can only hope for the wisdom of the current authorities, who promised to do everything to ensure that the situation in education is stabilized.

Industrialized at a rapid pace. In 60 years from the mid-1910s, the national treasury grew almost 100-fold. It was in Georgia that there were the most big salaries and social benefits. The government spent huge sums on the transition from the agricultural sector to the industrial sector. By the early 1980s, the country developed the production of petroleum products, metal products, and equipment. It is also worth noting the high foreign trade indicators.

Economy of Georgia after the collapse of the USSR

In the first years after the collapse, the country's budget underwent enormous changes. The main reason Negative trends in the domestic economy included a ban by the President of Georgia to conduct any trade relations with Russia. The consequence of this was a sharp decline industrial indicators state up to 60% by the end of 1992.

A couple of years later, the crisis affected not only large-scale production, but also all other industries. The forestry industry of Georgia, famous in Soviet times, has completely ceased to exist. Transport and production infrastructures were destroyed. Currency unit depreciated by 9000%. The result of the rollback of production was mass unemployment and a decrease in wages.

The formation of Georgia began only towards the end of 1995. The reason was the impressive loans from World Bank. Fortunately, inflation was stopped and effective reforms were carried out in the industrial and service sectors. Since 1996, the country finally began to experience financial recovery.

In the mid-2000s, 60% was truncated tax payments, large foreign investors were attracted, communications with global creditors were established. In recent years, the Georgian economy has been supported by foreign business partners and constant credit injections.

Agricultural industry

Today, the Georgian economy can be briefly characterized as stably post-industrial. However, agriculture still plays a significant role in it. From 1993 to 2008, agricultural sector indicators dropped to 25%. This share is evenly distributed between cultivated land and livestock.

After economic crisis in the mid-2000s, the Georgian authorities stopped allocating large amounts to support agriculture. On this moment Only 16% of land suitable for sowing remains in the country. Most of the land has been transferred to private businessmen and farmers. The share of the agricultural sector is only 12% of the country's GDP.

IN Lately plant crops produce extremely low yields. The reason for this is the chronic shortage of fertilizers and modern technology. It is noteworthy that now Georgia, for the first time in its history, is in dire need of additional grain imports. Grape lands decreased by 75%, tea lands by 94%, and cultivated lands by almost 50%.

As for livestock farming, negative dynamics are observed here too. Revenues from this industry fell by almost 80%.

Industry indicators

A negative trend has also been observed in the manufacturing sector over the past 20 years. The country's industrial performance dropped to 12%. Every year, the Georgian economy is replenished by this industry by 2-2.5 billion dollars.

The most profitable and developed are the light and food industries, as well as non-ferrous metallurgy. Recently, there has been an increase in production volumes in the mining and mining industries, water supply, gas sector, wood and mineral processing.

The food industry is a pillar of the Georgian economy. The drinks and products of this country are known far beyond its borders. This is especially true for tea, cognac, wine, cigarettes, oilseeds, mineral waters, and some fruits and vegetables.

It is impossible not to mention the chemical industry. Its share in the country's manufacturing sector is about 6%. The most popular products in the industry are nitrogen fertilizers, paints and varnishes and chemical fibers.

Energy and fuel complex

The Georgian economy experiences significant losses every year due to 100% import of petroleum products. Most of the fuel is purchased from Azerbaijan. The situation is similar with natural gas, but here Russia remains the main supplier.

The country's energy complex is based on several large thermal and hydraulic stations. It is interesting that a significant part of the generating capacity is controlled by Russian investors. Another distinctive feature of the Georgian energy complex is the parallel operation of all internal systems together with Azerbaijan.

There are only two thermal stations, but they are capable of covering 2/3 of the country’s territory. As for the hydropower complex, its heart is capable of developing a power of up to 1300 MW. Among the smaller stations, Perepadnaya and Vartsikheskaya can be distinguished.

Other sectors of the economy

Significant contribution to the state budget telecommunications contribute annually. Their profits are estimated at 4% of GDP. A leap in the development of this area of ​​activity was observed at the end of 2008. It is noteworthy that Georgia is the most expensive cellular communications ranks third in the world.

Recent years have been characterized by significant decline. A negative balance is determined by an increase in demand and needs for imports rather than for exports. Ferroalloys and raw gold are considered the most popular Georgian goods.

The volume of production of such resources as coal, manganese and minerals is also falling. However, there is an influx of tourists due to the abolition of the visa regime.

Financial structure

A significant decline in all sectors of production and services determines Georgia’s current place in the world economy. By volume GDP country is only 113th in the ranking. Georgia's treasury is estimated at $16.5 billion. Wherein average earnings per month per capita varies within $300.

The main disadvantage financial structure country is vulnerable to external factors. Tbilisi's economy is built on loans and investments. However, this is the only way the authorities can close the budget deficit.

Over the past 10 years, foreign aid to Georgia has amounted to 3 billion euros. Currently general state debt exceeds 11 billion dollars.

During 1990-2018. Georgia's GDP at current prices increased by $8.7 billion (by 98.2%) to $17.6 billion; the change occurred by -$2.5 billion due to a drop in population by 1.5 million, as well as by $11.2 billion due to an increase in GDP per capita of $2,863.0. The average annual growth of Georgia's GDP amounted to 0.31 billion dollars or 2.5%. The average annual growth of Georgia's GDP in constant prices was -0.0050%. The world share decreased by 0.018%. The share in Asia decreased by 0.10%. The minimum GDP was in 1994 ($2.7 billion). The maximum GDP was in 2014 ($17.6 billion).

During 1990-2018 GDP per capita in Georgia increased by $2,863.0 (2.7 times) to $4,504.0. The average annual growth of GDP per capita at current prices was $102.3 or 3.7%.

The change in Georgia's GDP is described by a linear correlation-regression model: y=0.56x-1 111.9, where y is the estimated value of Georgia's GDP, x is the year. Correlation coefficient = 0.852. Determination coefficient = 0.726.

Georgian GDP, 1990

Georgia GDP in 1990 amounted to 8.9 billion dollars, ranked 91st in the world and was at the level of the GDP of Sri Lanka (9.4 billion dollars), the GDP of Uruguay (9.2 billion dollars). The share of Georgia's GDP in the world was 0.039%.

In 1990 it amounted to $1,641.0, ranked 115th in the world and was at the level of GDP per capita in Poland ($1,738.0), GDP per capita in Bosnia and Herzegovina ($1,737.0), GDP per capita in Romania ( $1,728.0), GDP per capita in Iran ($1,714.0), GDP per capita in Tonga ($1,703.0), GDP per capita in the Marshall Islands ($1,675.0), GDP per capita in Colombia ($1 $645.0), GDP per capita in Tunisia ($1,642.0), GDP per capita in Micronesia ($1,639.0), GDP per capita in Thailand ($1,563.0). GDP per capita in Georgia was less than GDP per capita in the world ($4,317.0) by $2,676.0.

Comparison of GDP of Georgia and its neighbors in 1990. Georgia's GDP was greater than the GDP of Azerbaijan ($6.5 billion) by 36.2%, the GDP of Armenia ($2.3 billion) by 3.9 times, but was less than the GDP of Russia ($574.1 billion) by 98.5%, Turkey's GDP ($207.4 billion) by 95.7%. GDP per capita in Georgia was greater than GDP per capita in Azerbaijan ($900.0) by 82.3%, GDP per capita in Armenia ($651.0) by 2.5 times, but was less than GDP per capita in Russia ( $3,890.0) by 57.8%, GDP per capita in Turkey ($3,847.0) by 57.3%.

Comparison of Georgia's GDP and leaders in 1990. Georgia's GDP was less than the US GDP ($5,963.1 billion) by 99.9%, Japan's GDP ($3,132.8 billion) by 99.7%, Germany's GDP ($1,771.6 billion) by 99.5%, France's GDP ($1,269.1 billion) by 99.3%, Italian GDP ($1,176.4 billion) by 99.2%. GDP per capita in Georgia was less than GDP per capita in Japan ($25,160.0) by 93.5%, GDP per capita in the USA ($23,614.0) by 93.1%, GDP per capita in Germany ($22,392.0 ) by 92.7%, GDP per capita in France ($21,685.0) by 92.4%, GDP per capita in Italy ($20,593.0) by 92%.

Georgia's GDP potential in 1990. At GDP indicator per capita at the same level as Japan's per capita GDP ($25,160.0), Georgia's GDP would be $136.1 billion, which is 15.3 times the actual level. With per capita GDP at the same level as world GDP per capita ($4,317.0), Georgia's GDP would be $23.4 billion, which is 2.6 times its actual level. With a GDP per capita at the same level as Russia's best neighbor ($3,890.0), Georgia's GDP would be $21.0 billion, 2.4 times its actual level. With a GDP per capita at the same level as West Asia's GDP per capita ($3,697.0), Georgia's GDP would be $20.0 billion, which is 2.3 times its actual level. With a GDP per capita at the same level as Asia's GDP per capita ($1,732.0), Georgia's GDP would be $9.4 billion, which is 5.5% more than the actual level.

Georgia GDP, 2018

Georgia GDP in 2018 was 17.6 billion dollars, ranked 118th in the world and was at the level of the GDP of Botswana (18.6 billion dollars), the GDP of Laos (18.0 billion dollars), the GDP of North Korea (17.5 billion dollars), Mali's GDP ($17.2 billion), Gabon's GDP ($17.0 billion), Syria's GDP ($16.6 billion). The share of Georgia's GDP in the world was 0.021%.

GDP per capita in Georgia in 2018 was $4,504.0, ranked 124th in the world and was at the level of GDP per capita in Azerbaijan ($4,730.0), GDP per capita in Tonga ($4,625.0), GDP per capita in Guatemala (4,550.0 dollars), GDP per capita in Kosovo ($4,538.0), GDP per capita in Jordan ($4,264.0), GDP per capita in Sri Lanka ($4,245.0), GDP per capita in Armenia ($4,237.0 ), GDP per capita in Samoa ($4,216.0). GDP per capita in Georgia was less than GDP per capita in the world ($11,230.0) by $6,726.0.

Comparison of GDP of Georgia and its neighbors in 2018. Georgia's GDP was greater than the GDP of Armenia ($12.4 billion) by 41.6%, but was less than the GDP of Russia ($1,660.5 billion) by 98.9%, and the GDP of Turkey ($771.4 billion) by 97.7% , Azerbaijan's GDP ($46.9 billion) by 62.5%. GDP per capita in Georgia was greater than GDP per capita in Armenia ($4,237.0) by 6.3%, but was less than GDP per capita in Russia ($11,534.0) by 61%, GDP per capita in Turkey ($9,416.0) by 52.2%, GDP per capita in Azerbaijan ($4,730.0) by 4.8%.

Comparison of Georgia's GDP and leaders in 2018. Georgia's GDP was less than the US GDP ($20,580.2 billion) by 99.9%, China's GDP ($13,608.2 billion) by 99.9%, Japan's GDP ($4,971.3 billion) by 99.6%, Germany's GDP ($3,949.5 billion) by 99.6%, UK GDP ($2,855.3 billion) by 99.4%. GDP per capita in Georgia was less than GDP per capita in the USA ($62,981.0) by 92.8%, GDP per capita in Germany ($47,993.0) by 90.6%, GDP per capita in the UK ($42,889.0) ) by 89.5%, GDP per capita in Japan ($39,087.0) by 88.5%, GDP per capita in China ($9,617.0) by 53.2%.

Georgia's GDP potential in 2018. With a GDP per capita at the same level as the US GDP per capita ($62,981.0), Georgia's GDP would be $246.1 billion, which is 14.0 times its actual level. With a GDP per capita at the same level as West Asia's GDP per capita ($12,038.0), Georgia's GDP would be $47.0 billion, which is 2.7 times its actual level. With a GDP per capita at the same level as Russia's best neighbor ($11,534.0), Georgia's GDP would be $45.1 billion, 2.6 times its actual level. With per capita GDP at the same level as world GDP per capita ($11,230.0), Georgia's GDP would be $43.9 billion, which is 2.5 times the actual level. With a GDP per capita at the same level as Asia's GDP per capita ($7,006.0), Georgia's GDP would be $27.4 billion, which is 55.6% more than the actual level.

Picture. Georgia GDP, 1990-2018

Picture. GDP per capita in Georgia, 1990-2018

Picture. GDP growth in Georgia, 1990-2018

Georgia's GDP by expenditure

Comparison of GDP of Georgia and neighboring countries

This article will examine the economic state of Georgia in the period from 1990 to 2017, thanks to which the economy of this interesting country is developing, and what events have affected the financial well-being of its citizens.

Period before 1990

Georgia's economy underwent dramatic changes in the 20th century. Throughout its history, a completely agricultural country after joining the USSR began to transform into a wealthy industrial state. Under Soviet rule, the country's national income per capita increased 90 times. By 1990, 26% of Georgians were employed in industrial production, and 40% in the service sector.

This time is characterized by large volumes of manufactured industrial goods, from rolled metal to fertilizers.

Before the collapse of the USSR, Georgia's exports exceeded the country's production capacity, which traded in food and agricultural products.

Crisis periods

In the period after the collapse of the USSR, the Georgian economy suffered a serious crisis, which was associated with internal conflicts and the fact that the country's first president, Zviad Gamsakhurdia, signed a ban on trade with Russia.

A new crisis hit the Georgian economy in 2008. It was associated with the war in South Ossetia and the deterioration of relations with Russia. Only by 2010 the gross domestic product returned to pre-crisis levels.

Present tense

According to the GDP table by year, economic indicators of Georgia have good growth rates. But experts note that this dynamics is of poor quality. According to them, the government needs to invest more money in promising areas of production, creating new jobs and developing medium and small businesses. At the moment, the economy is based only on exports.

Industry

The main industries are:

• Lightweight;
• Food;
• Metallurgical.

The food industry contributes the most to Georgia's GDP growth, followed by metallurgy. Most factories and enterprises in the country are idle due to lack of funding.

Agriculture

Only 16% of the country's territory is suitable for growing agricultural products. The main suppliers are small farms and private estates.

Most farmers do not use the potential of modern technology, but practice manual labor. That is why, despite the fact that in agriculture 50% of the population is employed, it makes up 12% of the total gross product countries.

Energy

Until 2006, Russia supplied natural gas to Georgia at a high price. This led to the fact that the subsequent gas supply contract was given to Azerbaijan.

Main part electrical energy countries extract from thermal and hydroelectric power plants.

International trade

Modern foreign trade is in crisis. Last years the trade balance shows negative values. This is attributed to the government's inability to organize favorable export conditions.

Ferroalloys and raw gold are mostly exported, with Canada, Türkiye and Azerbaijan being the main buyers.

General indicators

Since 2000, there has been stable GDP growth, but since 2014 it has had negative values. In 2017 economic indicators Georgia ranks 121st in the world in terms of GDP.

The per capita GDP of modern Georgia in 2016 is $3,674 per person. In the US, this figure is $23,311. And Russia is 8903 dollars.