06.05.2026

Economic Growth and Its Impact on Living Standards in Georgia

This publication presents an in-depth study analyzing Georgia's economic trajectory and its impact on the quality of life of its citizens.

The main focus of the research is the paradox of the country's economic development — why macroeconomic growth fails to translate into an equal and tangible improvement in the living standards for the broader population.

The first part of the document details the country's macroeconomic trends (2004-2025), structural economic challenges, the geographical dimension of regional inequality, and severe capital asymmetry. It also analyzes labor market dynamics, migration, socio-economic stratification, and accessibility issues regarding basic services (water supply, healthcare, and education).

The second part of the work is entirely dedicated to recommendations. The author offers readers a new philosophy of the economic system and a model for targeted development. It proposes a strategic framework for fiscal transformation, decentralization mechanisms, and a vision for strategic infrastructure development and targeted social policy implementation, which will foster inclusive economic growth in the country.

This publication is a valuable resource for policymakers, researchers, students, and the wider public interested in the socio-economic development issues of Georgia.

Author: Tengiz Shergelashvili

Research Team: Giorgi (Gia) Khechinashvili, Rusudan Machaidze, Davit Kipiani, Givi Khachapuridze

Organizational and Technical Support: Khatuna Gurjishvili, Ana Asatiani

Year of Publication: 2025

Publishers: Friedrich-Ebert-Stiftung, Georgian Development Platform


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