Galt&Taggart published a report on the Education Sector in Georgia. According to the document, enrollment in private schools is expected to continue rising, reaching c.73.1k pupils by the 2028/29 academic year, up from the current 66.5k.
General education sector revenue was up 15.5% y/y to GEL 1.5bn in 2023, primarily driven by the increased government spending, while private sector
revenue also posted growth. Growth in private sector revenue was fueled by both higher enrolments and increased tuition fees.
"This growth is anticipated despite an overall decline in the school-age population attributed to decreasing fertility rates. Private schools in Tbilisi are anticipated to relocate to suburban areas, driven by urban land constraints and the migration of high-income residents to the outskirts.
Meanwhile salaries, a major cost component for the general education sector, are anticipated to increase driven by the spillover effect from planned government salary increases for public sector teachers. This will probably impact the profitability of private schools", - the document reads.
Government spending on education grew at a 12.8% CAGR over 2010-23. However, despite this growth, the ratio of government spending to GDP has remained relatively flat over the years, standing at 3.6% in 2023, which is below the EU average of 5.0%. Notably, the government plans to gradually increase spending on education, aiming to reach 6% of GDP from 2028.
Backed by strong government support, public sector still accounts for the majority of education sector revenue, grabbing 70.9% share in 2023. However, the private sector is also gaining momentum.
