Average Income of the Middle Class in Georgia and Other Countries

Recent global economic changes have clearly shown that the growth of average income has significantly slowed down in many countries around the world. According to the International Labour Organization (ILO), inflation and slowed GDP growth have led to a decline in wage growth globally. In this context, Georgia’s position is particularly interesting, as its economic indicators reflect both the challenges and achievements encountered on its path to development.

There are countries around the world where the average income remains extremely low, leading to significant social and economic challenges. For example, despite government efforts to raise the minimum wage by 10%, the income level in Indonesia remains low, barely exceeding the poverty line. Kenya also continues to face economic difficulties, marked by ongoing crises in the agricultural sector that have led to widespread protests. In Vietnam, the average income remains low despite government attempts to increase the minimum wage. Meanwhile, in Russia, income inequality is particularly evident, with a significant gap between oligarchs and the middle class. Similarly, in India, despite slight income growth, the poverty rate remains high, and a large portion of the population continues to struggle with economic hardships.

In contrast, countries with high incomes offer examples of economic stability and high living standards. Switzerland stands out with the highest average income in the world at $83,954. Despite high living costs, Swiss citizens are largely satisfied with their standard of living. Luxembourg also ranks high in terms of income and quality of life, where high living costs are fully offset by generous earnings. In the United States, despite income inequality, the average income remains high and meets expected living standards. Singapore, known for its high living costs, has managed to maintain economic growth and ensure high incomes for its citizens. The United Arab Emirates also provides relatively high income, though the country continues to face economic and social challenges.

Georgia’s position in the global economic landscape is that of a developing country, where average income is on a growth trajectory. The annual income of the middle class in Georgia stands at $8,500, which, while stable compared to some countries, still requires improvement. In recent years, Georgia’s economy has seen some progress, but challenges remain. High inflation and low wages for employed individuals threaten economic stability. To overcome these challenges, structural reforms are needed to ensure income growth and improve living standards.

Since 2018, the average monthly nominal wage in Georgia has increased significantly, reflecting some economic progress. In 2018, the average monthly wage was 1,068.3 GEL, while in the second quarter of 2024, it rose to 2,004.9 GEL. This change highlights the need for continued economic strategies and reforms that will support income growth and improve the quality of life for the population.

For Georgia and other developing countries, it is crucial to implement sound economic policies, carry out structural reforms, and introduce innovative approaches to enhance their position within the global economic systems and ensure the well-being of their citizens.