Journal number 2 ∘ Vakhtang Burduli ∘
Development of Georgian economic sectors in the context of modern challenges to socio-economic security

DOI kodi: 10.52340/ekonomisti.2026.02.01

Annotation. This article examines the development of Georgias economic sectors in the context of contemporary socioeconomic security challenges. It systematizes contemporary challenges and threats to socioeconomic development security in the context of a small country and discusses their impact on the changing sectoral structure of the Georgian economy. Within the framework of these circumstances, measures have been proposed for the further development of certain sectors of the Georgian economy (energy and electrical technologies, other technologies in the green economy, information and communication technologies being disseminated in various sectors, technologies in the field of composite materials, and certain sectors of heavy and light industry).

Key words: economic sectors, challenges and threats, socio-economic security, innovation.

Introduction

This paper discusses the concept of socioeconomic security. It examines indicators of Georgia\\\'s socioeconomic development, both general for the country as a whole and structurally and sectorally. It identifies which industries (sectors, types of activity) most significantly influence the structural and sectoral dynamics of Georgia\\\'s GDP and, consequently, the country\\\'s level of socioeconomic security. The paper then proposes and substantiates a strategy for implementing innovations in the energy sector and several subsectors of the manufacturing industry in the near future.

Understanding socio-economic security 

The state\\\'s primary objective is to maintain a stable level of social and economic security. The key components of socioeconomic security are sustainable economic development and social stability, and their status is monitored by development indicators. Ideally, "socioeconomic security is a state of protection of the economy, social sphere, and state institutions from internal and external threats, ensuring sustainable development, protecting the interests of society, and a high standard of living for citizens. It includes the system\\\'s ability to withstand crises, combat poverty and corruption, and ensure jobs and a fair distribution of wealth."

Modern socioeconomic development faces a number of challenges.

Demographic issues and health. An aging population, declining birth rates, and the need for improved healthcare.

Social stability: protecting the interests of citizens, maintaining an acceptable standard of living, combating unemployment, reducing incomes, and poverty, which requires the development of a comprehensive policy to overcome poverty [Логвинова Н.].

Economic uncertainty, inequality: social stratification, poverty and structural changes in the economy (deindustrialization).

Digitalization and technological change, artificial intelligence: the need to adapt the workforce and infrastructure.

Environmental and geopolitical threats: environmental sustainability and integration into the changing global economy.

The ongoing geopolitical fragmentation [Геополитическая …] and geo-economic fragmentation [Геоэкономическая …] in the world will influence the implementation of structural-sectoral policy in Georgia and it is necessary to prepare for this.

Modern indicators of socioeconomic development. Monitoring GDP and GDP per capita, investment, inflation, household income, employment, and labor productivity. Quality of life: household income, access to education and healthcare, and unemployment. Human capital: the quality, cost, and productivity of labor. Institutional factors: market coordination and public administration effectiveness.

It can be said that “socio-economic security in the context of national security includes: economic security; social security; health security; psychological security; personal security of a person; food security; public security; political security.” [Логвинова Н.]. Most of these problems are supervised and resolved in the process of functioning and development of sectors and subsectors (branches) of the national economy of the country. 

Current state of socio-economic development indicators in Georgia 

As of January 1, 2025, the population of Georgia was 3,704,500 people[1]. In recent years (2019-2024), this number fluctuated between 3,688,600 people (2022) and 3,756,400 people (2023) [Statistical …, 2025].

The labor force (economically active population) in 2020 was 1,523,800 people, and in 2024, it was 1,629,500 people. Of these, 81.5% of the total economically active population were employed in 2020, and 86.1% in 2024; of these, 55.5% and 58.9% were employees, respectively, and 26.0% and 27.1% were self-employed. The unemployment rate was 18.5% and 13.9%, respectively [Statistical …, 2025, p. 42]. High unemployment is a challenge that must be overcome.

The average nominal monthly salary of employees in 2020 was GEL 1,191.0, and in 2024 – GEL 1,990.8[2]. By type of economic activity (sectors, industries), it ranged in 2020 from GEL 819.0 in “water supply; sewerage, waste management, and pollution control activities” to GEL 2,156.9 in financial and insurance activities, and in 2024 from GEL 1,281.9 in agriculture, forestry, and fisheries to GEL 3,923.1 in information and communication [Statistical …, 2025, p. 43].

The average monthly per capita income in 2024 was 562.4 GEL (601.7 GEL in cities and 498.0 GEL in rural areas). The average monthly per capita consumer expenditure nationwide was 406. GEL (437.0 GEL in cities and 356.6 GEL in rural areas).

In 2024, the subsistence minimum for a man of working age was 256.1 GEL, and the level of median consumption was 487.9 GEL From this, two levels of relative (in the context of Georgia) poverty are calculated: the share of the population consuming below 60% of median consumption was 18.9% in 2024; the share of the population consuming below 40% of median consumption was 6.7%. Finally, in absolute poverty (below the subsistence minimum), 9.4% of the country\\\'s population lived in 2024 [Statistical ..., 2025, pp. 53, 57-59]. These poverty indicators also pose challenges to the country\\\'s current socioeconomic development. These levels need to be improved.

GDP per capita is an important indicator for assessing the level of socioeconomic development by comparing indicators across countries. The World Bank, IMF, and UN publish these figures annually for all countries. However, the figures for specific countries vary slightly across different lists. Purchasing power parity (PPP) takes into account price differences between countries, allowing for accurate comparison of GDP figures. Georgia\\\'s per capita PPP of $28,418 in 2024 is 23% of the global average PPP ($23,049), ranking it 82nd out of 203 countries [ВВП на душу …].

However, the IMF list of GDP per capita [Список стран ...] gives a figure for 2024 that is much different from the PPP indicator given above, at $9,142 per capita (and $10,126 per capita for 2025), and Georgia ranks 87th out of 196 countries. The figure from the IMF list does not differ much from the figure for 2024 given in the statistical reporting on Georgia in Table 1.7 of the National Accounts of Georgia – $9,241.5 per capita [National Accounts ..., 2026, p. 27]. The GDP per capita indicators in Georgia are also provided here in GEL: 2020 - 13,374.3 GEL per capita; 2021 - 16,373.8 GEL; 2022 - 19,685.6 GEL; 2023 - 21,769.1 l GEL; 2024 - 25,144.2 GEL per capita [National ..., 2026, p. 19].

This per capita GDP value can also be considered a specific challenge for socio-economic security, meaning it is necessary to pursue an economic policy to surpass it, and to do this, it is necessary to identify opportunities for growth in the sectoral (by type of economic activity) components of GDP. Overall, Georgia\\\'s GDP in basic prices has increased in recent years from 43,453.4 lari in 2020 (previously, in 2020, there was a sharp decline due to COVID-19) to 80,979.4 lari in 2024, and in market prices from 49,788.5 lari in 2020 to 99,022.3 lari in 2024 (see Table 1.7 in [National …, 2026, p. 27]).

By examining tables 1.7 GDP, 1.8 Percentage structure of GDP and 1.10 Chain-Linked Volume Indices of GDP from the collection of National Accounts of Georgia [National …, 2026, pp. 27, 28, 30], we can identify which sectors (types of economic activity) most actively influence the structural-sectoral dynamics of Georgia’s GDP and, consequently, the level of socio-economic security of the country.

The share of the Agriculture, Forestry, and Fisheries sector in the GDP structure in 2020 (calculated in basic prices) was 9.5%, and in 2024 it was 6.3%. According to the chain index of growth, the production volume of this sector in 2024 amounted to 117.6% of the 2019 level (100%). This is a modest increase, given the challenges facing Georgia\\\'s food security, which is a significant component of the country\\\'s socioeconomic security.

The share of manufacturing in GDP declined from 10.8% in 2020 to 9.7% in 2024. In 2020, Georgia\\\'s overall GDP declined to 95.1% compared to 2019 (due to the COVID-19 pandemic – a global trend). The total volume of manufacturing output also declined compared to 2019 levels, reaching 94.1%. In 2024, despite the decline in the share of manufacturing in GDP, the chain index of growth shows that the volume of production in the manufacturing industry increased and amounted to 122.3% compared to 2019 (100%). However, this increase is unsatisfactory: both the share of manufacturing in GDP and its growth index are becoming challenges that must be overcome (or, in other words, increased) to maintain the country\\\'s socioeconomic security. The manufacturing industry covers many sectors of heavy, light and food industries, some of which will be discussed below.

The share of "Electricity, gas, steam and air conditioning supplies" in GDP in 2020 was 2.4%, in 2021 and 2022 - 3.3%, in 2023 - 2.9% and in 2024 - 2.4%. In chain growth indices (2019 - 100%), the following picture was observed: 2020 - 99.4%, 2021 - 143.7%, 2022 - 193.0%, 2023 - 188.1%, 2024 - 168.3%. Gas was completely imported, and electricity was partially imported, partly generated at hydroelectric power plants and imported gas.

The construction sector experienced a definite decline in 2020-2023. Its chain growth index, compared to 2019 (100%), fell to 84.3% in 2022 and only rose to 109.1% in 2024. Construction\\\'s share of GDP during these years (2020-2024) peaked in 2020 at 8.7%.

The share in GDP of the "Wholesale and retail trade; repair of automobiles and motorcycles" economic activity is very high: 14.7% in 2020, reaching a peak of 16.0% in 2023, and 15.4% in 2024. The chain index of growth in 2020, as in most other leading industries, declined to 94.9%, but reached 107.0% in 2021 and 144.7% in 2024. Activities in this sector, particularly those related to export-import operations, are of great importance in supporting the country\\\'s socioeconomic security.

The "Transportation and Warehousing" industry\\\'s share of GDP in these years (2020-2024) fluctuates between 6.0% in 2020 and a maximum of 6.5% in 2022. In 2024, it will be 6.3%. The chain growth index for this industry, compared to 2019 (100%), fell to 95.6% in 2020, reached a maximum of 136.4% in 2022, and then declined slightly again to 111.2% in 2024.

The industries discussed above make a significant contribution to the country\\\'s socioeconomic development. Now let\\\'s focus on those industries that make a particular contribution to the social component of socioeconomic development.

The Information and Communications industry (activity) has always played a significant role in socio-economic and industrial relations, and its social and industrial significance has been increasing in recent years. In 2020, its share of GDP was 3.2%. In 2021, it was 3.5%. Its share then increased to 5.0% in 2022, 6.0% in 2023, and 6.4% in 2024. The growth dynamics of its chain index (2019 – 100%) are also impressive: 103.9% in 2020, 137.8% in 2021, 218.3% in 2022, 278.3% in 2023, and 346.9% in 2024.

The share of the Financial and Insurance sector in GDP in the period under review (2020-2024) fluctuates between 4.8% and 5.0%. Its growth rate, however, increases from 98.8% in 2020 (100% in 2019) to 152.6% in 2024.

The share of the Real Estate Activities sector in GDP fluctuates between 9.2% in 2022 and 11.4% in 2020, and its chain index of growth fluctuates between 99.4% in 2020 and 106.6% in 2021, and 101.4% in 2024.

The share of the "professional, scientific, and technical activities" sector in GDP was 2.4% in 2020, then declined slightly, but returned to 2.4% in 2024. The chain index of growth fell to 81.1% in 2020 (2019: 100%), but then began to gradually increase and reached 126.2% in 2024.

The share of the activity "Public administration and defense; compulsory social insurance" in GDP was 7.4% in 2020 and 6.8% in 2024. The chain index of growth of this activity was 102.3% in 2020 (2019 - 100%) and 137.9% in 2024.

In light of new challenges to socioeconomic development, the role of Education, including specialized and technological education, is growing even more. Meanwhile, the share of Education in GDP in the years under review (2020-2024) fluctuated between 4.5% in 2022 and 6.6% in 2024. However, the index of growth (2019 – 100%) increased from 106.9% in 2020 to 184.6% in 2024.

The "Healthcare and Social Services" sector is also crucial for supporting socioeconomic development. Its share of GDP fluctuated between a peak of 4.9% in 2021 and 3.6% in 2023. Its chain index of growth also peaked in 2021 at 132.6% and peaked in 2020 at 94.1%.

In statistical reporting in the system of national accounts, such an important sector as manufacturing is presented in Table 1.7 of GDP as a single line, without being divided into sub-sectors. Meanwhile, it accounts for up to 20.5% of gross output [National …, 2026, p. 24] and 34.2% of intermediate product [National …, 2026, p 26]. Since the logic of our socio-economic research requires an understanding of these “sub-sectors,” we will turn to Table 11.2 of the collection [Statistical …, 2025, p. 148, 149], which presents data on the volume of products released in these “types of economic activity” in current prices. Here are the data from this table for 2024 on the manufacturing industry as a whole and on some other major positions in this sector: Manufacturing industry as a whole - 17138.9 million GEL, of which: food production - 3555.6 million GEL; beverage production - 4148.0 million GEL; tobacco production - 48.8 million GEL; textile production - 65.7 million GEL; clothing production - 473.7 million GEL; leather and related product production - 59.0 million GEL; paper and paper products production -223.5 million GEL; printing and reproduction of media recordings - 226 million GEL; chemicals and chemical products production - 681.2 million GEL; basic pharmaceuticals and pharmaceutical preparations production - 375.0 million GEL; rubber and plastics production - 618.6 million GEL; Production of other non-metallic products – 2,663.8 million GEL; Production of basic metals – 1,730.4 million GEL; Production of finished metal products, except for machinery and equipment – ​​762.3 million GEL; Production of computers, electronic and optical products and electrical equipment – ​​241.8 million GEL; Furniture production – 269.2 million GEL; Repair and installation of machinery and equipment – ​​300.4 million GEL.

This information on the manufacturing industry shows that Georgian entrepreneurs are striving to utilize resources for industrial processing to the extent possible. However, threats arise here: difficulties in selling finished products both domestically and abroad. For example, in the "leather and related products" sector, goods worth 295.2 million GEL were produced in 2022, while in 2024, they were only worth 59.0 million GEL [Statistical …, 2025, p. 148]. This means that certain sectors are experiencing difficulties selling finished products.

A major challenge to Georgia\\\'s socio-economic development is the annual increase in the negative balance between exports and imports. In 2020, exports were worth $3,340,636 thousand and imports $8,848,758 thousand, respectively, at current prices, with a negative balance of -$4,708,123 thousand. In 2024, exports were $6,558,689 thousand and imports $16,888,791 thousand; the negative balance between exports and imports was -$10,330,103 thousand [Statistical …, 2025, p. 155].

If we consider investments in fixed assets (the total amount in 2024 is 19,830.3 million lari, Table 1.19 [National …, 2026, p 39]), we will find (Table 1.20 [National …, 2026, p 40]) that the maximum share in the amount of investments is occupied by the position (type of activity) “public administration and defense, mandatory social security” - 32.6%; then comes construction - 26.8%; then “wholesale and retail trade; repair of cars and motorcycles” - 6.5%; manufacturing industry - 6.3%; agriculture, forestry and fisheries - 4.6%; information and communication - 3.8%; “supply of electricity, gas, steam and air conditioning” - 3.2%. The shares of other positions (types of activity) are less than 3.0% [National …, 2026, p 40]. Among these activities were “health care and social services” - 2.1% and Education - 1.0%, which requires special public attention to the coordination of their development.

Overall, modern socioeconomic development faces challenges such as demographic shifts, digitalization, inequality, and climate change. Key metrics include not only GDP growth but also improving quality of life, human capital development, innovation, and environmental sustainability. Performance is assessed through development indices, employment, and institutional effectiveness. 

Development of the sectoral structure of the Georgian economy

In Georgia, imports exceed exports by almost three times. This situation can only be rectified by developing import-substituting and export-oriented industries. Therefore, the country\\\'s immediate priority is to implement basic process innovations (i.e., building new enterprises by importing new innovative production technologies), as well as implementing improvement innovations in certain sectors, using domestic specialists in collaboration with European and other international experts.

The main problem to socioeconomic security, which motivates the establishment of modern, high-tech, innovative enterprises in the country, is the guarantee of subsequent sales of manufactured products. Recall the meticulous planning and coordination with the world\\\'s largest airlines (Boeing, Airbus, Bombardier) regarding export sales during the joint construction of the Tbilisi Aircraft Composites Plant (ATC) by the Georgian Partnership Fund and the Israeli company Elbit Cyclon [ბურდული ვ., 2018].  

Electric power industry.

   The availability of affordable electricity is a key factor in stimulating foreign capital investment in the country\\\'s economy, for example through joint ventures. Meanwhile, the majority of the country\\\'s electricity is currently imported, with thermal power plants also running on imported gas. Therefore, over the next decade, efforts must be focused on building power plants using renewable energy sources. An agreement was signed to build a cascade of hydroelectric power plants (HPPs) consisting of the Kvemo Namakhvani (333 MW) and Zemo Namakhvani (100 MW). However, due to unacceptable operating conditions, the agreement with the investor was terminated. However, these hydroelectric power plants must be built. In our view, the state itself (the Partnership Fund) should act as the investor, and finding a contractor is not that difficult; for example, the Italian company Salini Impregilo could be involved.

In 2019, construction of several new wind farms was scheduled to begin in Georgia: 1) near Tbilisi and in the Mtskheta Municipality, with a capacity of approximately 50 megawatts; 2) in the Imereti Region, with a capacity of approximately 100 megawatts; 3) in the Gori Municipality, the Nigozi Wind Farm, with a capacity of approximately 50 megawatts; 4) in the Khashuri and Khoragauli Municipalities, with a capacity of approximately 20 megawatts. However, due to a number of circumstances, construction of these power plants has not yet begun.

The number of power plants based on primary renewable energy sources (excluding hydroelectric power plants), namely wind and solar power plants, is negligible in Georgia. Neither businesses nor relevant government institutions are willing to invest in the construction of such facilities. This is primarily because their electricity generation is unstable: solar power plants generate electricity only during the day, and the amount of electricity generated depends on the intensity of solar radiation (which varies throughout the day with the sun\\\'s altitude and is also dependent on cloud cover), while the amount of electricity generated by wind power plants depends on wind strength.

The problem of widespread use of solar and wind power plants in Georgia can be solved by installing energy storage devices at them.

Manufacturing industry.

Electrical industry. Currently, the production of batteries is rapidly expanding worldwide. These batteries are essential for electric vehicle production, as energy storage devices for solar and wind power plants, and for smartphones, drones, and other mobile devices. Moreover, they are constantly being innovatively modernized. Even more advanced types are expected to emerge in the near future, with Japan and, particularly, South Korea, until recently considered leaders in battery technology innovation [Гурков А., 2020]. Many electric vehicle and battery factories are already operating or under construction. Tesla is the leader, building electric vehicle factories not only in the US but also in other countries, such as Germany. Other companies are also building such factories, including Ford, which has agreed with South Korean company SK Innovation to build two massive complexes in the US where they will produce electric vehicles and batteries. The partners will invest a total of $11 billion, $7 billion of which will be invested by Ford [Ford инвестирует ..., 2021]. In Norway, the production of battery-powered aircraft (propeller-driven, of course, with a range of up to 400 km) is already underway.

The issue of equipping wind and solar power plants with energy storage devices is of great importance for the immediate development of Georgia\\\'s electric power industry.

While turbines play a fundamental role in traditional power generation, energy storage devices are crucial for the development of increasingly popular renewable energy sources: without them, the main problem of wind and solar power plants—their dependence on weather variability—cannot be solved [Гурков А., 2020].

Energy storage devices primarily utilize appropriate batteries (batteries for stationary installations in the electric power industry). Recently, their innovative modernization has been intensive worldwide, resulting in their cost decreasing by two-thirds between 2010 and 2020 [Гурков А., 2020].

Lithium-ion batteries (which have the disadvantage of occasionally catching fire [Ставицкий A., 2021]) continue to be further improved worldwide, and methods for recycling them for reuse are also being developed. The latest initiatives to improve batteries for electric vehicles, renewable energy power plants, etc., include the development of lithium-iron phosphate, lithium-silicon, and solid-state batteries, as well as sodium-ion batteries [Ставицкий А., 2021].

Given the particular relevance of this issue for the development of the Georgian electric power industry, it is crucial that Georgian scientists engage in these cutting-edge developments in the near future. It would also be advisable for the country to make efforts to establish a company producing energy storage batteries for wind and solar power plants, at least as a joint venture with foreign partners, although this is extremely difficult to achieve.

Another approach to storing energy from renewable sources is the development of pumped-storage hydroelectric power plants (PSPPs). This is the oldest and most well-established technology for storing electricity. When electricity is surplus, an electric pump pumps water from a lower reservoir to an upper one. When it is needed, the water is released downstream, powering a hydroelectric generator (for more information, see [ბურდული ვ., 2020]).

Production of composite materials and products made from them. This industry is currently experiencing rapid growth worldwide. Innovative products made from innovative composite materials are replacing components made from traditional materials in many industries (due to their durability and relative lightness compared to traditional materials, among other qualities). [ბურდული ვ., 2018].

According to expert estimates, the main consumers of composite products in the world are transport engineering (about 28%), the construction industry (including pipes and tanks for housing and communal services, about 24%), energy and electronics, including wind energy (about 23%), the oil and gas industry (about 10%), sports, medicine, and non-ferrous metallurgy. [ბურდული ვ., 2018].

The production of composite materials and products made from them requires a whole range of specialized, complex, and expensive technologies. Due to the ever-increasing demand for composite materials and products made from them and increasing competition among manufacturers, these technologies are constantly being improved, and new technologies are being developed, including software (described in [ბურდული ვ., 2018]).

Given the growing demand for composite products in both domestic and international markets, and Georgia\\\'s experience in establishing enterprises in this sector, the country urgently needs to establish new, recognized, and viable enterprises in this sector. To this end, it would be advisable to create a dedicated innovation cluster. Within this cluster, a dedicated innovation center for composite materials and composite products should be established, with public and private capital. This center would facilitate the search for and research of relevant international production technologies, facilitate the transfer of necessary technologies to interested organizations and enterprises, including the selection and supply of equipment and tooling, support the development of technological processes, facilitate the training of engineering and technical personnel, invite foreign specialists, if necessary, to set up equipment and train employees, and participate in preliminary assessments of sales opportunities both domestically and internationally.

In our view, the country\\\'s first priority in the near future should be establishing a facility to manufacture wind turbine housings and blades, which will be in demand in both domestic and international markets. Particular attention should be paid to developing the production of composite materials for construction, as demand for them is high domestically, and import-substituting production can be developed in this area. However, in some industries (for example, automotive and aircraft manufacturing), it is impossible to establish domestic production of the corresponding composite materials without prior agreements with large transnational corporations for export sales. Given the country\\\'s current lack of enterprises producing automobiles, large ships, or aircraft, such products will not be in demand domestically.

Metallurgical industry. Currently, the Zestafoni Ferroalloy Plant operates in Georgia, selling its products internationally. There is also a small metallurgical plant, created on the premises of the larger Rustavi Metallurgical Plant, which is owned by foreign investors. It is premature to discuss the further development of the steel industry in Georgia. However, in light of recent developments in the green economy, technologies for carbon-neutral steel production have been developed.

Most recently, the Swedish company HYBRIT achieved significant success in this area. It began testing a carbon-free steelmaking technology in 2020 at a plant in the northern city of  Luleå. Conventional steel production requires coal, but HYBRIT replaced it with electricity and "green" hydrogen. Representatives of the steel company SSAB, which accounts for 10 percent of Sweden\\\'s carbon emissions and 7 percent of Finland\\\'s, believe that the trial production of clean steel is an important step toward the industry\\\'s transition away from fossil fuels. Another company, H2 Green Steel, plans to build a plant in northern Sweden to produce environmentally friendly steel. In addition to steel, the company will begin producing hydrogen from renewable sources starting in 2024 [Швеция произвела ..., 2021].

In Georgia, it\\\'s too early to talk about creating such production facilities due to the lack of domestically produced electricity. However, as Georgia expands its renewable energy capacity, it will be possible to consider creating such facilities, which are increasingly relevant in light of the inevitable increase in green economy measures. Therefore, it seems that Georgian scientists should begin studying the challenges of creating such facilities in the near future.

Information and communication technologies. It is precisely their speed and versatility that have made information and communications technologies so in demand in modern science, manufacturing, and everyday life. Computers, smartphones, digital television electronics, and so on are a unique phenomenon that, over the past decades, has fundamentally changed the lives of every person on the planet. Within the sphere of these existing technologies, their modernization occurs primarily through the implementation of improvements and pseudo-innovations.

Of course, there\\\'s no immediate opportunity to establish production of modern computers, televisions, smartphones, and other basic communications devices in Georgia. This market is firmly occupied by multinational companies, and it\\\'s unlikely that any of them would be willing to establish a joint venture with our entrepreneurs to produce, for example, modern televisions or other basic products. However, there is an opportunity to utilize and develop advances in digital electronics (information and communications technology) for application in other industries. The transition to new forms of work organization using automated task distribution systems, enterprise management systems that take into account efficient resource allocation, electronic accounting and document management, as well as production and environmental monitoring systems and systems for supporting management and technological decision-making, enables a qualitative leap forward and more efficient use of existing economic potential. This transition is already well underway, with the implementation of related innovations in information and communications technologies across various economic sectors. At the same time, the volume of new innovative developments in this field is growing worldwide.

Contemporary researchers and specialists identify ten key areas of digital technology development (in these areas, both basic and enhancing innovations are being implemented, some of which are product-based, but mostly process-based; however, in the service sector, many of them can be interpreted as product-based): 1. Artificial Intelligence and Machine Learning; 2. Blockchain and Cryptocurrencies; 3. Big Data; 4.Telemedicine; 5. Augmented and Virtual Reality (AR/VR); 6. Bots and Virtual Assistants; 7. Mobile and Cybersecurity; 8. IoT – Internet of Things; 9. Computer Vision; 10. Artificial Neural Networks [Чеботарев А., 2018] (for details see: [ბურდული ვ., 2020; Бурдули В., 2020]).

A number of small businesses have already been established in Georgia in some of these areas (see: [ბურდული ვ., 2020; Бурдули В., 2021]). In our view, Georgian businesses need to continue developing initiatives in this area over the next decade, including with the support of the Georgian Agency for Technology and Innovation and the Agency “Produce in Georgia”.

However, in some industries, it is possible to establish fairly large enterprises in Georgia in the near future, utilizing the latest digital technologies in their products, the global market for which is still in the process of formation. For example, with some effort and the necessary connections with leading international companies, it is possible to establish the production of drones, i.e., unmanned aerial vehicles (e.g., small battery-powered cargo planes, flying taxis, and quadcopters).

Transport engineering. During the Soviet era, Georgia produced various vehicles: electric locomotives, hydrofoils, trucks, and Su-21 military fighter jets. Unfortunately, these facilities were lost. Of course, these facilities are now hopelessly outdated, and restoring them is pointless. Therefore, it is necessary to take into account current global trends in innovative transportation development and try to create new transportation products. Naturally, the global market for traditional transportation is saturated, controlled and marketed by renowned transnational corporations from several leading countries (the USA, China, Germany, South Korea, Japan, France, and others), which are also opening their own factories in other countries. Therefore, it is necessary to turn to new innovative trends.

Currently, a number of countries, including smaller ones (Israel, Norway, Switzerland, Denmark, Finland), naturally, most often through collaboration with companies from larger countries, are developing, and some have already built, small and even medium-sized (nineteen-passenger) propeller-driven electric aircraft of various classes using the latest lithium-ion batteries. Moreover, they are lighter and more fuel-efficient than comparable aircraft using traditional fuel and are environmentally friendly (see, for example, [Израиль ..., 2019]).

It appears that Georgia has certain prerequisites for establishing such production in the near future. First, it has a plant manufacturing composite materials for a certain class of aircraft, which could be used to produce airframes and other parts for the planned aircraft types. Second, Georgia has the scientists and specialists who can help import the necessary batteries and subsequently establish their production (or production of even more advanced types) in Georgia.

Electric vehicle production is also worth considering. Production of their composite body shells could be established in Georgia, but the batteries would have to be imported (if possible) from South Korea. Even major Western companies (Tesla, Ford) are collaborating with South Korean firms on this issue.              

Later, it will be necessary to create a special plant for the disposal of dead lithium-ion batteries in order to restore and reuse them (as is currently done with lead batteries).

Light industry. The main priorities of the light industry are the textile, clothing, and leather and footwear industries.

During the Soviet era, Georgia had a textile industry, including a large silk weaving mill and a worsted wool mill. However, these assets were lost as globalization led to foreign competitors taking over sales markets. Currently, Georgia\\\'s agricultural sector produces a significant amount of sheep wool, which is exported. However, it seems necessary to process this wool domestically and produce woolen fabrics. The principles of producing such fabrics have remained virtually unchanged for centuries, but more cost-effective innovative production technologies have emerged. It seems that the Georgian Agency of Innovation and Technology should assist entrepreneurs in establishing such production. Such products could be supplied to domestic garment factories, which also largely need to be restored. Of course, promoting these products to foreign markets will be more challenging.

During Soviet times, Georgia also had a clothing industry, some of which were high-quality and in high demand throughout the Soviet Union (such as sportswear). However, most clothing products lacked high quality and design and were unable to compete in international markets. Currently, global clothing markets are dominated by a number of large Western and Chinese companies producing world-renowned brands. Most of the clothes worn by the Georgian population are imported. Several Georgian companies, as noted in [Турнава Натия, 2021], have managed to secure the support of foreign brand names and are producing clothing for them, primarily for foreign markets, although a small portion is also sold domestically. In the future, it is also necessary to explore ways to collaborate with such companies, produce new types of clothing for world-renowned brands, and establish joint ventures with such companies in Georgia (this is extremely difficult, but possible).

The problem with the leather and footwear industry is even more serious. Throughout the Soviet Union, footwear and other leather goods for mass consumption were produced in low quality and in insufficient quantities in the final decades of its existence. The situation worsened when N.S. Khrushchev banned private cooperatives, many of which tanned leather, and some also produced footwear. From then on, the country was increasingly forced to import footwear and other leather goods from China, Czechoslovakia, Yugoslavia, Italy, Austria, and other countries. Georgian-produced footwear was also of poor quality, and the factories that produced it closed in the early 1990s. Agricultural leather began to be exported as raw materials, without further processing in the country.

The problem with the leather and footwear industry is even more serious. Throughout the Soviet Union, footwear and other leather goods for mass consumption were produced in low quality and in insufficient quantities in the final decades of its existence. The situation worsened when N.S. Khrushchev banned private cooperatives, many of which tanned leather, and some also produced footwear. From then on, the country was increasingly forced to import footwear and other leather goods from China, Czechoslovakia, Yugoslavia, Italy, Austria, and other countries. Georgian-produced footwear was also of poor quality, and the factories that produced it closed in the early 1990s. Agricultural leather began to be exported as raw materials, without further processing in the country.

It is also necessary to produce saffiano leather (in the 70s and 80s of the last century, a small number of leather coats were produced in Georgia, but they were made from coarse leather and were uncompetitive). It seems necessary to establish an innovative cluster in the leather tanning industry, uniting small businesses in various regions of Georgia. Their creation, development, and operations would be coordinated by a special unit, which we believe should be established within the Georgian Agency of Innovation and Technology. As for the production of high-quality footwear, leather coats and jackets, and other leather goods, collaboration between local businesses and leading foreign firms is even more crucial. Excellent footwear is manufactured in China, the United States, and European countries, including Italy (from where footwear is even exported to the United States), Austria, and several other countries. However, it will be difficult to get companies from these countries to transfer relevant process technologies to our entrepreneurs and train our workers, although the terms of Georgia\\\'s Association Agreement with the EU provide for this possibility to some extent. Most importantly, in the leather and footwear industry, our entrepreneurs should try to enter into agreements for the production of footwear, leather coats, and other items with European companies producing modern, branded products. 

Conclusions 

Socioeconomic security is a state of protection of the economy, social sphere and state institutions from internal and external threats, ensuring sustainable development, protection of the interests of society and a high standard of living for citizens. Modern socio-economic development faces a number of challenges and threats, many of which are related to the structural-sectoral development of the economy. Therefore, the work on statistical data for 2020-2024 analyzes the development dynamics of sectors (activities) in Georgia: the share of activities in GDP and the chain indexes of growth of these shares in GDP are examined. It is noted, for example, that the share of GDP and the chain index of GDP for the manufacturing industry (which includes many subsectors) are not growing rapidly enough. Therefore, the work on statistical data for 2020-2024 analyzes the development dynamics of industries (activities) in Georgia: the share of activities (sectors) in GDP and the chain indices of growth of these sectors are examined. It is noted, for example, that the share of GDP and the chain index of growth of manufacturing (which includes many subsectors) are not growing rapidly enough. During these same years, the share of GDP and the chain index of growth for the "information and communications" activity are growing well (a global trend).

A major challenge to socio-economic development is the annual increase in the negative balance between exports and imports of products (imports are almost three times higher than exports).

The main challenge to socio-economic security that hinders the deployment of high-tech enterprises in the country is the lack of a guarantee of subsequent sales of the products planned for production.

he availability of affordable electricity is a key factor in attracting foreign capital to the country\\\'s economic sectors. Therefore, over the next decade, the energy sector must focus on building power plants powered by renewable energy sources. First of all, it is necessary, where it is still possible, to build hydroelectric power plants (since the electricity generated by hydroelectric power plants is the cheapest), but not under the same onerous conditions under which it was proposed to build the Namakhvan cascade of hydroelectric power plants, the contract for the construction of which was terminated. In the next decade, it is necessary to begin the widespread construction of innovative solar and, in particular, wind power plants, which, due to the instability of their electricity generation in different periods, must have energy storage devices.

For this (and not only for this), Georgia needs to develop an electrical industry that can produce energy storage devices: lithium-ion batteries (which are currently being intensively improved, and new types of batteries are being developed); gravity energy storage devices (which were invented quite recently); pumped-storage power plants (it seems like that Georgian scientists should also be involved in the development of new types of batteries, and it would be advisable for the state to finance the relevant research and development).

The production of batteries for electric vehicles and aircraft is also becoming increasingly important. Therefore, it would be timely if Georgia learned to produce such batteries, and if scientists began researching the possibilities of recycling them for restoration and reuse.

Georgia already has several factories producing composite materials and, primarily, composite parts. Given this experience, it is imperative to establish new, internationally recognized production facilities in this subsector in the near future. To this end, a dedicated cluster must be established, with an innovation center that will coordinate the development of this industry. First and foremost, a plant for the production of prepregs (i.e., composite sheet molds) is needed, as composite materials are currently imported to Georgia, and parts made from them are formed at local factories. Subsequently, it would be possible to establish facilities for the production of bodies and wind blades from these prepregs, which will be in demand both domestically and internationally, as well as bodies for passenger cars.

In the metallurgical industry, a carbon-free steelmaking technology was recently developed in Sweden. Consideration should be given to establishing a plant using this technology in the future, based on the existing metallurgical plant in Rustavi. However, it is too early to discuss such a plant due to the lack of domestically generated electricity. However, as domestic renewable energy capacity increases, it will be possible to consider establishing such facilities, which are increasingly relevant in light of the inevitable increase in green economy measures.

There are two areas of entrepreneurship in information and communications technology: the production of information and communications equipment and the use and development of digital electronics achievements in other industries.

Of course, there\\\'s no immediate opportunity to establish production of modern computers, televisions, smartphones, and other basic communications devices in Georgia. This market is firmly entrenched in multinational companies, and it\\\'s unlikely that any of them would be willing to establish a joint venture with our entrepreneurs to produce, for example, modern televisions or other basic products. However, there is an opportunity to utilize and develop advances in digital electronics (information and communication technologies) for application in other industries. A number of small businesses have already been established in Georgia in some of these areas. In our view, Georgian businesses should continue to develop initiatives in this area over the next decade, including with the support of the Georgian Agency for Technology and Innovation and the Produce in Georgia Agency (for details, see: [ბურდული ვ., 2020; Бурдули В., 2020, Бурдули В., 2021]).

It is further proposed and justified, following the example of a number of small countries, to organize in the transport engineering subsector the currently relevant production of small propeller-driven electric aircraft (which should be supported by the supply of components from the composite materials and products manufacturing sector and the electrical industry), as well as electric vehicles.

Now about the light industry. The negative export-import balance can only be reduced by gradually moving toward advanced processing of raw materials within the country. This problem particularly affects the light industry, whose products are largely imported into the country. To revive the light industry sectors (textiles, clothing, leather and footwear), the export of wool and raw hides must be stopped. Innovative textile and clothing enterprises, innovative leather tanning enterprises (producing various types of products), and enterprises manufacturing footwear and other leather goods must be created, primarily through agreements with manufacturers of famous brands (although this is difficult, it is achievable). 

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