Georgia’s economic growth is not translating into improved living standards for a large share of the population, according to economist Akaki Tsomaia. Speaking to BMG, he said that despite strong GDP growth, real incomes for many households are either stagnating or declining, particularly among lower-income groups.
Tsomaia noted that food inflation continues to outpace wage growth, creating a structural challenge for households. He estimates that around 66% of employed individuals earn no more than GEL 1,200–1,500 per month, while food expenses account for more than half of income among lower-income families. As a result, many people struggle to maintain their purchasing power despite broader economic expansion.
The economist attributes the disconnect to sectoral imbalances in the economy. Fast-growing industries, such as information and communications technology (ICT), employ relatively few people, while sectors with larger workforces, including trade and manufacturing, have seen slower employment and wage growth. He also noted that rising profits in some industries have not necessarily led to higher salaries or increased hiring.
Tsomaia argued that addressing these challenges requires long-term reforms, stronger institutions, greater integration into global markets, and increased participation in technological innovation. His comments come as a recent CRRC survey found that 77% of Georgian households lack enough savings to cover even one month of expenses if they lose their source of income.
