DOI kodi: 10.52340/ekonomisti.2026.02.07

Expanded Summary

Economic growth is one of the most important macroeconomic indicators of a country’s sustainable development and welfare. It reflects the combined performance of different economic sectors and their contribution to Gross Domestic Product. Structural transformation is an essential feature of modern economic development, as the role and importance of sectors change over time. This issue is particularly relevant for Georgia, where traditional sectors continue to dominate the economy, while knowledge- and technology-based activities have gradually strengthened in recent years. The study analyzed twenty economic sectors in Georgia and their contribution to GDP and economic growth over the last fifteen years. The results show that since 2011 more than half of Georgia’s GDP has mainly been generated by five sectors: wholesale and retail trade, real estate activities, agriculture, manufacturing, and public administration. Although major structural changes have been limited, some important sectoral shifts have emerged. In particular, the information and communication sector became one of the leading contributors to economic growth by 2025. The analysis also demonstrates that sectoral contributions to economic growth have been highly unstable, indicating the vulnerability of the Georgian economy to internal and external shocks. Dependence on sensitive sectors such as tourism, construction, and trade increases economic risks and limits long-term stability. At the same time, education and information/communication sectors have shown strong positive dynamics in recent years. In 2024, their combined contribution to economic growth reached 28.8%, increasing to 48% in 2025. This trend has been strongly influenced by the growth in international students and the expansion of educational service exports, suggesting that Georgia is gradually developing into a regional educational hub. The information and communication sector has shown especially rapid growth. Its share in GDP increased from 3.7% to 8%, while its contribution to economic growth rose from -0.1% to 2.2%. This reflects the ongoing digitalization of the economy and the increasing importance of technology-based activities. Similarly, the education sector strengthened both its share in GDP and its role in economic growth, highlighting the growing importance of human capital in Georgia’s economic development.

Overall, the study concludes that although Georgia has not experienced deep structural transformation, the role of knowledge-based and technology-oriented sectors is steadily increasing. The strengthening of education, information technologies, and communication activities indicates the gradual emergence of a more modern, innovation-driven, and competitive economic model, which may become an important foundation for sustainable long-term economic growth.