Economist Akaki Tsomaia says Georgia’s current economic growth dynamics are driven by short-term factors rather than sustainable, long-term development. He made the remarks in an interview with BMGTV, reiterating that, as in previous years, external factors remain the main driver of growth.
According to Tsomaia, real economic development is based on technological progress and institutional strength, which require modern knowledge, innovation, research, investment, and cooperation with Western partners. He argued that without these elements, long-term growth is not possible.
He noted that Georgia is not currently building a strong international brand through unique production or specialization, and that recent economic activity is largely supported by tax incentives in the ICT sector, as well as logistics and re-export growth linked to geopolitical developments such as the Russia-Ukraine war and the situation in Iran.
Tsomaia added that these geopolitical drivers are temporary and cannot last indefinitely. He also claimed that government policies have not strengthened long-term institutional investment attractiveness, arguing that “the government has done everything to slow down long-term growth,” while warning that underlying structural problems, including rising crime, could eventually affect sectors such as tourism.
