Our latest Georgian Economic Climate publication offers assessments of various economic developments by Georgian economists. Assessment of Georgia’s current economic situation was negative, while predictions for Georgia’s economic situation by the end of the next six months were extremely negative. Overall, their outlook was significantly more pessimistic compared to the previous reporting period. Political turmoil and exchange rate fluctuations had the greatest impact on the Georgian economy in Q4 2024. The suspension of EU membership talks was assessed negatively by all surveyed economists in terms of its effects on Georgia’s economy.

Georgia and Kazakhstan share strong ties rooted in the historic Silk Road. Today, the countries are connected by the Trans-Caspian route and the Middle Corridor, interest in which has grown in recent years. Since 2022, Georgia has strengthened its relations with Kazakhstan, with new logistics agreements and crucial advances in transport and infrastructure, making Kazakhstan a key trade partner. The second issue of the Profile of Bilateral Relations offers an in-depth exploration of key topics of the trade relationship between Kazakhstan and Georgia: Historical Background Bilateral Trade Between Georgia and Kazakhstan Identifying Profitable Products for Trade Transportation Trends Common Trade Routes Between Georgia and Central Asia The Middle Corridor Future Outlook   The full policy paper, “Facilitating Trade with Central Asia: Georgia’s Role as a Transit Corridor“, is available in Georgian.

In Georgia, the average cost of a room in a 3-star hotel was 154 GEL per night in December 2024, while the average cost of a room in a 4-star hotel in Georgia was 238 GEL per night and the average cost of a room in a guesthouse was 110 GEL per night. The average cost of a room in a 5-star hotel in Georgia in December 2024 was 444 GEL per night. In Mtskheta–Mtianeti, the average price was 928 GEL, followed by Tbilisi – 580 GEL, Kakheti – 568 GEL, and Samtskhe-Javakheti – 371 GEL.

Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. November marked the largest YoY decrease in 2024 in the total number of vacancies published on jobs.ge (-9%). In November 2024, the total number of people receiving a monthly salary reached 1 million for the first time. In Q3 of 2024, the labor market efficiency decreased as both the seasonally adjusted unemployment rate and the job openings rate increased. Please refer to the full publication for more insights.

In Q3 of 2024, Georgia recorded 2.4 million international visits, marking a slight 2% rise YoY, primarily attributed to a 15% decrease in same-day trips, while overnight trips increased by 8%.  In Q3 of 2024, outbound visits declined by 7% YoY, possibly due to rising travel costs, particularly in Türkiye, the top destination for Georgian outbound visitors, where inflation led to a 68% YoY increase in hospitality costs.  Over two years, 125,000 people attended performances as part of the “Starring Georgia” series, while income generated from ticket sales amounted to GEL 21.4 million, with tourists contributing 16%. 

In Georgia, the average cost of a room in a 3-star hotel was 153 GEL per night in November 2024, while the average cost of a room in a 4-star hotel in Georgia was 232 GEL per night and the average cost of a room in a guesthouse was 111 GEL per night. The average cost of a room in a 5-star hotel in Georgia in November 2024 was 443 GEL per night. In Tbilisi, the average price was 612 GEL, followed by Kakheti – 548 GEL, Guria – 502 GEL, and Mtskheta–Mtianeti – 372 GEL.

Georgia's hospitality industry benefits from country’s rich cultural and natural attractions. To support the growing interest in these offerings, Georgia has 3,198 registered accommodation providers, though most are smaller-capacity family hotels and guesthouses. Since 2020, 238 new hotels have opened, and another 324 are planned by 2027, which will increase bed capacity by 130%. While Tbilisi and Adjara see the most growth, rural areas lag behind.  Key challenges include weak long-term planning, high operating costs for smaller businesses, and limited market diversification. For the sector to grow sustainably, the focus must shift to improving infrastructure, diversifying markets, and attracting high-value tourists.

The latest issue of Employment Tracker, offers insights into recent developments in Georgia’s labor market. In October 2024, the number of people receiving a monthly salary increased by 3.2% YoY. The share of individuals earning up to 600 GEL continues to decrease, though they still represent a notable portion (15%) of total salary recipients. Over the past six months, the Administration and Management sector, previously one of the fastest-growing, has experienced a decline in the number of vacancies. Please refer to the full publication for more insights.

Our latest publication analyzes Household Income and Poverty in Georgia (2019 – 2023): From 2019 to 2023, Georgia’s nominal median household income grew at a compound annual growth rate (CAGR) of 11%, while real median household income, adjusted for inflation, increased at a CAGR of 4% annually. During this period, social transfers accounted for an average of 58% of the total income for the poorest 20% of households, highlighting their strong reliance on government assistance. Between 2020 and 2023, absolute poverty significantly decreased from 21.3% to 11.8%, while the relative poverty rate remained relatively stable, dropping by just 0.3 percentage points to 19.8%. The share of households reporting themselves as “poor” or “extremely poor” decreased slightly from 39.7% to 35.4% over the analyzed period, suggesting a persistent gap between subjective and objective measures of poverty.

In Georgia, the average cost of a room in a 3-star hotel was 168 GEL per night in October 2024, while the average cost of a room in a 4-star hotel in Georgia was 261 GEL per night and the average cost of a room in a guesthouse was 115 GEL per night.