Georgia ranked the 8th in the world by the revenue growth per capital within the last 20 years (1998 – 2018) but despite this, Georgia is still a low-income country. Both circumstances are interesting, the 1st – how we turned out on the 8th place and the 2nd – if the country is one of the leaders of 2 decades, why has not Georgia become rich, – Forbes.ge reports.
According to the publication, if the average annual income per capita in Georgia was 1 272 GEL in 1998, the figure increased 3.4 times over the next 20 years and amounted to 4 335 GEL. Georgia is ranked the 8th r in the world by 3.4 times growth. Turkmenistan is ranked as the 1st with a growth of 7.3 times. Armenia and Azerbaijan have a slightly better result than Georgia.
Envisaging the Purchasing Power Parity – PPP (2011 international dollars), Georgia is on the 8th place in terms of income growth. Revenue on per capital was 3 023 PPP in 1998, while the rate was 3.4 time higher in 2018 – 10 305 PPP USD. This methodology examines the income of the country according to its purchasing power. In general, prices are lower on the products in low-income countries comparing to high-income countries, the purchasing power of poor countries is always higher. As usual, in the so-called nominal dollar, revenue on per capita had been 4 500 USD in 2018.
Despite Georgia ranks as the 33th in the world by economic growth rate within last 20 years, by the revenue on per capita, the country is ranked as the 8th. This difference will be explained by decreasing the number of Georgian population. In most of the world’s population the number of population is growing, and in 1998 the population decreased by 15% (800,000). As a result, income growth rate for one of the population was 6.4%.
If the number of Georgian population has not decreased, Georgia would be on the 13rdplace in the world by the revenue on per capita.
Despite being on the 8th place, Georgia’s revenues are still enough low within 20 years. In 2018, Georgia is on the 105th place in the world with income on per capita. However, Georgia was on the 133rd place in 1998.