Although Georgia’s economy grew by 6.3% in June 2025, driven by key sectors such as information and communication, manufacturing, transport, and trade, some experts question how real and inclusive that growth is, particularly the contribution of the information technology (IT) sector.
According to Geostat, the development of computer programs, IT consulting, and related services were primary drivers of growth in the information and communication field. However, economist Soso Berikashvili casts doubt on the actual impact of these developments on the Georgian economy and citizens' well-being.
“At first glance, growth driven by information technology sounds like a positive trend,” said Berikashvili. “But there is reasonable doubt that what we’re seeing is turnover recorded on paper, without a genuine contribution to the local economy.”
Berikashvili explained that many foreign IT companies are drawn to Georgia due to favorable tax conditions, registering their operations locally, which boosts official turnover figures. However, these companies often don’t operate physically in Georgia, don’t pay income taxes, and do not reinvest their earnings in the local economy.
“These companies record their turnover here, but they aren’t creating local jobs, spending money in Georgia, or contributing to public finances. So while Geostat is not misreporting the data, the structure of the current system leads to misleading and unrealistic economic results,” he said.
Despite the overall 8.3% growth in the first half of 2025, the rate has begun to decelerate, with growth slowing from 7.5% in April and May to 6.3% in June. Moreover, indicators such as VAT-paying company turnover also show a slowdown.
