The sharp growth in computer services revenue is not unique to Georgia, with neighboring Armenia recording a similar trend, economist Roman Gotsiridze said in a Facebook post. According to figures cited by the economist, Armenia’s IT services exports exceeded $1.83 billion, 3.6 times higher than in 2021. Georgia recorded faster percentage growth over the same period, at 7.5 times, but its total volume remained lower at $1.148 billion.
Gotsiridze said several factors behind the rapid expansion of the sector are similar in both countries. Following Russia’s invasion of Ukraine, the region saw increased relocation of technology professionals and capital. Relatively liberal tax regimes for IT companies have also contributed to making Georgia and Armenia attractive destinations for technology businesses and specialists.
At the same time, the economist highlighted differences between the two markets. In Georgia, the sector’s expansion was significantly supported by professionals relocating from Russia, Ukraine and Belarus. In Armenia, alongside these inflows, an established presence of international, including U.S., technology companies has played an important role. Gotsiridze said these companies had already established a significant presence in Armenia before the war, providing a longer-term foundation for the country’s IT sector.
Gotsiridze also pointed to Nvidia’s entry into Armenia as a potential additional catalyst for investment in the technology sector and related industries. He said Armenia’s experience demonstrates that, beyond short-term geopolitical factors, sustained growth in technology exports also depends on the presence of a more established ecosystem connected to international technology companies.
