World Bank: Georgia’s poverty rate hits new historic low in 2024

The World Bank has published a new report on poverty and equity in Georgia, offering an in-depth analysis of recent trends and projections through 2027.

According to the report, international poverty indicators in Georgia have declined to historic lows as of 2024, highlighting significant socio-economic progress in the country.

The share of Georgia's population living below the international extreme poverty line has dropped sharply, falling almost 2.5 times in just two years to reach 1.8 percent in 2024. The World Bank projects that this figure will decrease further to 1.4 percent in 2025 and reach 1.1 percent by 2027.

For comparison, in 2003, 12.95 percent of the population was living below the international poverty line, and by 2012, this figure had only slightly declined to 10.67 percent. Since 2012, however, extreme poverty has fallen sixfold over 12 years.

The report describes Georgia’s progress as a result of strong economic growth, improved labor market conditions, and targeted government policies. Between 2017 and 2023, the poverty rate - defined by the international poverty threshold of daily consumption below $6.85 (in 2017 PPP) - fell from 53.9 percent to 40.7 percent.

During the same period, Georgia's welfare gap - a metric that indicates how far average incomes fall short of reaching a $25 daily income standard (in 2017 PPP) - improved from 5.1 in 2017 to 4.0 in 2023, reflecting gains from economic development and government interventions.

Income inequality has also declined, as demonstrated by a drop in the Gini index from 37.9 in 2017 to 34.8 in 2023. Post-pandemic poverty reduction efforts were bolstered by rising real wages, pensions, and enhanced social protection measures. Additionally, inflation dropped to 1.9 percent by the end of 2024, easing cost-of-living pressures on low-income households.

Economic expansion in sectors such as trade, services, tourism, and construction contributed to employment growth, helping reduce the unemployment rate from 20.6 percent in 2021 to a record low of 13.9 percent in 2024. Youth unemployment also improved, with the share of 15–24-year-olds not in employment, education, or training (NEET) falling from 28.5 percent in 2020 to 21.0 percent in 2023.

The World Bank emphasised that economic opportunities, rising labor incomes, and effective government programs have driven poverty reduction in Georgian households. Georgia’s social protection system played a key role, especially the Targeted Social Assistance program, which effectively reached poor households despite limited coverage.