Georgia’s Latest Data on Monetary Transfers

In September, the volume of remittances to Georgia experienced a slight decline, although transfers from certain countries continued to grow. This trend reflects both global economic shifts and the financial dependence of Georgia’s population on remittances.

According to Geostat data, the total volume of remittances in September 2024 amounted to $283.4 million, 1.1% less than the same period last year. Despite this minor decline, the volume of funds sent out of Georgia increased by 16.4%, reaching $33.9 million.

The volume of remittances from Russia decreased by 40%, totaling $36 million. This decline may be attributed to geopolitical and economic factors affecting the financial situation of Georgian citizens residing in Russia. However, remittances from other countries, such as the United States and Israel, continued to grow. Transfers from the U.S. increased by 17.7%, and from Israel by 20.4%. This trend indicates that Georgian citizens living and working in these countries continue to provide significant support to their families and the economy.

Significant growth was also observed in remittances from Kyrgyzstan and the United Kingdom. Transfers from Kyrgyzstan increased by 111.5%, and from the U.K. by 16.9%. This growth highlights a positive trend in certain areas, contributing to the financial well-being of Georgian citizens. It also reflects not only financial support but also broader economic and cultural ties between Georgia and these countries.

One notable source of remittances is EU countries. In September, funds sent from EU nations accounted for 45.6% of total remittances. Italy, Greece, and Germany represented significant shares of these transfers, underscoring the importance of economic support from EU member states. The growth in remittances from the EU reflects increased interest in Georgia and deepening economic ties, which contribute to the country’s economic stability and development.

The contribution of EU countries is important not only in terms of volume but also in terms of consistency, which provides Georgia’s economy with opportunities for further advancement. Funds sent from these countries support both individuals and businesses, directly impacting the country’s economic development.

In contrast, remittances from regional countries, particularly Turkey and Azerbaijan, declined. Transfers from Turkey decreased by 3.1%, while those from Azerbaijan dropped by 15.8%. This decline may be related to the broader economic situation in the region and geopolitical changes. Additionally, remittances from Ukraine remained minimal, a result of the ongoing geopolitical crisis there. The war in Ukraine has significantly reduced the amount of money migrants send, which affects Georgia’s economy as well.

The decline in transfers from regional countries suggests that Georgia’s economic ties with some neighbors are weakening, possibly due to local economic difficulties and global trends. However, increasing remittances from other countries partially offset this loss, highlighting Georgia’s growing integration into the global economy.

In September, the main sources of remittances were EU countries (45.6%), the United States (17.3%), and Russia (12.6%). These figures demonstrate the significant role of the EU and the U.S. in supporting Georgia’s economy through financial transfers. This distribution underscores the diversity of Georgia’s economic connections and the scale of financial support Georgian citizens receive from compatriots abroad.

At the same time, the reduction in remittances from Russia points to global and regional changes affecting the financial activities of individuals and businesses.

The remittance sector continues to play a vital role in Georgia’s economy, despite recent changes. The growth of transfers from the EU and the U.S. is a positive trend that reflects Georgia’s strengthening ties with the West, while the decline in transfers from Russia highlights global economic shifts and the reliance of Georgia’s population on remittances.

The decrease in remittances from regional countries such as Turkey and Azerbaijan is another important factor affecting Georgia’s economic situation. Meanwhile, the growing transfers from the EU and the U.S. indicate that Georgia’s economy is increasingly integrated into the global market, a positive trend for the country’s development. Therefore, the remittance sector remains one of the key factors influencing both the financial condition of individuals and the overall economic development of the country.