World Bank: Georgia has made “notable gains” in income growth, poverty reduction over past decade

The World Bank on Thursday published the Macro Poverty Outlook report of Europe and Central Asia, highlighting that Georgia “has made notable gains in income growth and poverty reduction” in the past decade.

In the report, released twice annually, the Bank stressed a declining trend of poverty and unemployment in the country, in the light of the economy expanded by 7.5 percent in 2023, following two years of double-digit economic growth.

As a result of sound macroeconomic management, gross national income per capita increased from $9,580 to $15,880 in 2022. Poverty declined from 70.6 percent in
2010 to an estimated 47.7 percent in 2022”, the Bank added.

The report said “poverty has been declining in the country, supported by an increase in real wages, social protection measures, and declining food prices”, noting the job market also “experienced a strong recovery”, with unemployment decreasing from 20.6 percent in 2021 to “a record low” of 16.4 percent in 2023.

The structural challenges, notably weak productivity and limited high-quality job creation were emphasised as the challenges in the country.

In December 2023, Georgia was granted candidate status by the European Union. The EU accession process offers unique opportunities to boost reforms to achieve prosperity and converge with other member states”, the report stressed.

The Bank forecasts the growth of the economy to ease to 5.2 percent in 2024 as a result of “tight monetary policy, a slowdown among trading partners, and heightened geopolitical risks”. The poverty rate is expected to keep declining gradually.