Georgia profile

Demography and Health

Georgia is a relatively small country in the South Caucasus with a population of about 3.67 million as of 2024. The demographic profile is characterized by a modest natural dynamic, as the crude birth rate stands at 11.5 per 1,000 people (2023) while the crude death rate is slightly higher at 11.8 per 1,000 people (2023). In practical terms, this implies a near-stagnant or very slowly shrinking natural population, but the country benefits from positive net migration, which totaled 1,745 people in 2024 and helps offset natural decline. The total population is ranked at around 130 globally in 2024. Life expectancy at birth is 74.5 years (2023), a respectable figure that reflects progress in health systems, though it sits at a mid-range position globally (rank 109). Mortality under age five is 9.2 per 1,000 live births (2023), indicating ongoing child health needs but not an alarming child mortality trend. The suicide mortality rate is 5.1 per 100,000 population (2021), a figure within a broader range observed in many countries of the region, highlighting mental health as an area for continued policy attention.

Health financing and access show a country investing in health, though resources remain constrained in a global sense. Current health expenditure is 7.26% of GDP (2022), with domestically funded health expenditure per capita, purchasing power parity terms, at about $614 (2022). The density of physicians is strong, at 5.61 per 1,000 people (2022), suggesting good access to medical professionals relative to many peers. This combination points to a health system that is reasonably capable but working within limited fiscal space, which is often the case for small economies expanding coverage and improving outcomes. Internet penetration is high, with 81.9% of the population using the Internet in 2023, a factor that supports telemedicine, health information access, and digital health initiatives as the country continues to digitize its services and empower citizens with online health resources. On nutrition and poverty, the prevalence of undernourishment is 4.0% (2022), and the poverty headcount ratio at national poverty lines is 11.8% (2023), indicating that a sizable share of the population remains at risk of poverty despite improvements elsewhere. Overall, the health and demography indicators reflect a country with solid capacity in health workforce and access, but with ongoing challenges in nutrition, mental health, and ensuring broad-based poverty reduction.

Economy

Georgia’s economy presents a middle-income profile with a nominal GDP per capita of $9,194 in 2024 and a GDP per capita at purchasing power parity of $28,418 (2024). This spread signals a comparatively higher purchasing power within the country than what nominal earnings alone might suggest, reflecting relatively affordable prices for many goods and services. The country exhibits notable openness to the global economy: exports of goods and services account for 48.4% of GDP in 2024, while imports represent 56.0% of GDP in the same year, underscoring a trade-intensive economy that integrates closely with international markets. The current account balance stands at -4.42% of GDP in 2024, consistent with a moderate external deficit, often associated with energy or capital goods imports and a surplus in the services or investment components can offset some of that deficit over time. Inflation is contained at 1.11% in 2024, signaling price stability that supports consumer purchasing power and macroeconomic planning. Foreign direct investment, net inflows, amount to 4.05% of GDP in 2024, indicating a reasonable level of investor interest and confidence, aided in part by governance indicators that show relatively strong policy execution, even if other dimensions of governance warrant attention.

Georgia also hosts a vibrant high-technology export sector, with high-technology exports valued at about $38.19 million in 2024 and ranking 20th in the world by the indicated metric. This suggests a growing niche in advanced manufacturing or ICT-related goods. Research and development expenditure stands at 0.253% of GDP in 2023, a share that remains low relative to global leaders but shows a commitment to innovation with room to grow. Patent activity among residents reached 90 filings in 2021, indicating a modest but meaningful level of inventive output. Governance indicators align with this innovation trajectory: regulatory quality is high at 0.947 (rank 39), while government effectiveness is solid at 0.791 (rank 42). In contrast, the rule of law is weaker at 0.177 (rank 87), and control of corruption sits at 0.618 (rank 53), suggesting that enforcement of laws and protection of property rights may lag policy formulation in some areas. Taken together, the economic data point to a country that is actively integrating into global value chains, supported by a capable administrative apparatus and reform-minded regulatory frameworks, while still navigating challenges in legal certainty and anti-corruption implementation.

Trade and Investment

Georgia operates in a highly trade-oriented environment. Exports of goods and services represent 48.4% of GDP in 2024, while imports account for 56.0% of GDP, reflecting substantial reliance on external sources for both inputs and consumer goods. The persistent current account deficit of -4.42% of GDP in 2024 aligns with this openness, signaling net external financing needs but not necessarily an unsustainable trajectory given FDI inflows and the potential for export diversification. The country’s ability to attract capital is evidenced by a net inflow of foreign direct investment at 4.05% of GDP in 2024, suggesting that investors see opportunities in Georgia’s growing sectors, asset markets, and governance reforms. The logistics dimension is moderately strong, with the Logistics Performance Index (Quality of trade and transport-related infrastructure) rated at 2.3 on a 1-to-5 scale (2022), placing Georgia in a position of competitive logistics capability but with room to further upgrade infrastructure to reduce trade costs and delivery times. On the technology frontier, high-technology exports are a bright spot for a country of Georgia’s size, signaling specialization in advanced sectors and potential for stepping up value-added production through targeted investment in research, innovation, and human capital. The overall trade and investment landscape suggests a country that leverages its strategic location and policy openness to integrate with regional and global markets while continuing to invest in the capabilities needed to climb into higher value-added export baskets.

Governance and Institutions

Georgia’s governance indicators reveal a nuanced picture. Political stability and absence of violence/terrorism score -0.336 in 2023, with a rank of 129, highlighting ongoing vulnerability to political risk and regional volatility. Nonetheless, other governance dimensions show strong performance: regulatory quality is notably high at 0.947 (rank 39), and government effectiveness is solid at 0.791 (rank 42). Control of corruption sits at 0.618 (rank 53), indicating a moderate level of corruption control, while the rule of law remains weaker at 0.177 (rank 87). These patterns suggest that while the country has a capable and reform-minded civil service that can implement policy effectively, the legal framework and rule-of-law environment require continued attention to ensure predictable contract enforcement, property rights, and impartial justice. Together, these governance attributes can underpin a favorable business climate and the ability to attract investment, particularly in sectors tied to regulation, finance, and infrastructure. The combination of strong regulatory quality and governance effectiveness with weaker rule of law underscores a potential policy tension: policy design may be sound and well-implemented, but the legal environment and rule enforcement must keep pace to maximize investor confidence and long-term inclusive growth.

Infrastructure and Technology

Infrastructure and technology indicators portray a country progressing in digital and logistical capabilities, with both strengths and gaps. Internet penetration is high, with 81.9% of the population online in 2023, which supports digital services, entrepreneurship, and e-government initiatives. The country’s logistics infrastructure quality is measured at 2.3 on a scale from 1 to 5 (2022), ranking 23rd in the world among peer benchmarks, indicating a solid but improvable logistics environment that can influence trade costs and efficiency. In technology terms, Georgia dedicates a modest share of GDP to research and development, at 0.253% (2023), and resident patent activity amounted to 90 filings in 2021, signaling an emerging innovation ecosystem that could benefit from targeted policy incentives and increased private sector R&D activity. The high-technology export value, while modest in absolute terms (about $38.2 million in 2024), is comparatively strong for a small economy, ranking 20th in the world in that measure, which reflects the country’s ability to produce and export technically sophisticated goods. The health sector’s workforce is reinforced by a physician density of 5.61 per 1,000 people (2022), indicating an adequate level of medical specialists for the population. Renewable energy consumption accounts for 25.2% of total final energy consumption (2021), underscoring a structural shift toward cleaner energy sources, even as total energy demand continues to grow. Taken together, Georgia shows a credible advancement in digitalization, innovation, and energy transition, while still needing to scale up R&D investment, strengthen the legal framework for commercial innovation, and accelerate the modernization of transport and trade infrastructure to unlock higher value-added economic activity.

Environment and Sustainability

Georgia’s environmental and sustainability profile features a mix of opportunities and challenges that are typical for small, open economies with rapid development ambitions. Renewable energy accounts for 25.2% of final energy consumption (2021), signaling progress toward cleaner energy and energy diversification, albeit with further potential to expand renewables as a share of total energy demand. The level of water stress, measured as freshwater withdrawal relative to available resources, stands at 5.24 (rank 122) in 2021, suggesting relatively moderate water withdrawal intensity and a manageable water resource balance, though geopolitical and climate factors could alter this dynamic. Total greenhouse gas emissions per capita exclude emissions from LULUCF and are 5.13 t CO2e per person in 2023, indicating a moderate carbon footprint per capita compared with global averages, but with room to reduce emissions further through energy efficiency, renewable deployment, and industrial modernization. On the social front, 4.0% of the population faced undernourishment (2022) and 11.8% lived below national poverty lines (2023), which points to ongoing development needs to ensure equitable access to food, energy, and essential services, even as other indicators suggest improving living standards. The overall environmental narrative for Georgia is one of progress toward cleaner energy and sustainable growth, balanced against vulnerabilities related to climate, resource management, and the need for continued investment in inclusive development to ensure that environmental gains translate into broad-based well-being.