Economy of Georgia

Tbilisi - The Main Driving Force of the Georgian Economy


Tbilisi, populated with 1.1 citizens, leads in the country in terms of production: Tbilisi has 71% of total turnover of enterprises and 66% of produced goods. 64% of people employed in Georgia's private sector are working in Tbilisi. Adjara is second place among the regions in terms of production, followed by the Imereti, Kvemo Kartli, and Samegrelo-Zemo Svaneti regions.

The variation between the regions is caused by the difference in the working power between Tbilisi and other regions. In most of the regions, people are self-employed in the relatively low-productive agricultural sector; therefore the value of the produced goods is low. In Tbilisi, most of the working population works in more productive sectors such as the trade, transport, industry and healthcare sectors.

Moreover, there is some non-organic disbalance between Tbilisi and other cities in Georgia. Tbilisi residents violate ‘Zipf's law,’ according to which if the largest city in the country has a population of at least one million people, the population of the second largest city should be at least half a million, and the third largest city should have about three times less population than in the biggest city. However, the populations of Batumi and Kutaisi are almost equal to each other, and neither city has a population over 200,000 people, therefore the population proportion is violated compared to Tbilisi.

Batumi has started to be promoted in recent years as the second largest city in Georgia. As a result, the Adjara region has practically improved in all directions, and Batumi has become the country’s ‘second city’ in turnover of enterprises, number of employed people, and production of goods.


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