{"id":35045,"date":"2025-12-04T12:31:37","date_gmt":"2025-12-04T08:31:37","guid":{"rendered":"https:\/\/cue.edu.ge\/?post_type=articles&p=35045"},"modified":"2026-01-21T14:40:08","modified_gmt":"2026-01-21T10:40:08","slug":"structural-challenges-of-georgia-s-economic-growth-sustainability-and-social-inequality","status":"publish","type":"articles","link":"https:\/\/cue.edu.ge\/en\/articles\/structural-challenges-of-georgia-s-economic-growth-sustainability-and-social-inequality\/","title":{"rendered":"Structural Challenges of Georgia’s Economic Growth: Sustainability and Social Inequality"},"content":{"rendered":"

Gocha Tutberidze<\/strong><\/p>\n

Doctor of Economics, Professor, Central University of Europe<\/p>\n

gocha.tutberidze@cue.edu.ge<\/a><\/p>\n

Gocha Ugulava<\/strong><\/p>\n

Doctor of Economics, Associate Professor, Central University of Europe<\/p>\n

gocha.ugulava@cue.edu.ge<\/a><\/p>\n

Abstract<\/strong><\/p>\n

Over the past decade, Georgia\u2019s economy has exhibited high growth rates, driven by both post-pandemic recovery processes and the combined effects of external and domestic factors. Real GDP has nearly doubled, exports and average wages have increased, and unemployment has declined. However, these achievements reflect only superficial success and conceal deep-rooted structural problems that threaten the sustainability of the country\u2019s economic model. The analysis confirms that economic growth has not been accompanied by sufficient job creation or efficient utilization of labor resources: self-employment and informal employment remain high, while \u201chidden unemployment\u201d is not fully captured in official statistics. Regional disparities and the unequal distribution of social benefits heighten the risks of social polarization. Migration dynamics indicate a substantial outflow of the working-age population, whereas the rise in immigration generates new socio-economic challenges. The structure of foreign trade remains dependent on re-exports and low value-added products, while limited innovative potential and a low level of research and development (R&D) significantly constrain the country\u2019s competitiveness. The decline in foreign investment and the consumption-driven nature of economic growth further reinforce structural weaknesses. Overall, Georgia\u2019s current economic development trends call for a comprehensive policy revision aimed at strengthening labor market institutions, fostering innovation-driven sectors, and promoting strategies focused on regional balance.<\/p>\n

Keywords<\/strong>: Georgian economy; structural imbalance; labor market; migration; social inequality; foreign investment; innovative development.<\/p>\n

JEL Codes:<\/strong> O11; J21; F21<\/p>\n

DOI: <\/strong>10.52244\/c2025.1<\/p>\n

Article\u00a0<\/strong><\/a><\/p>\n

Refernces<\/strong><\/p>\n

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