“Getting Rich Before Growing Old” – Challenges and Opportunities for Georgia

It is crucial for a country to grow rich before becoming an aged society. This formula has worked well for countries like Japan and Italy, which today are considered “rich and aged” nations. These countries managed to accumulate economic resources when their populations were still relatively young. Now, these resources help sustain their social systems and meet the growing needs of their aging populations.

However, not every country has had the same “success recipe.” Georgia is currently among the countries classified as both aged and less affluent. This is an especially challenging position. In 2023, Georgia’s median age is 38, indicating a population on the path to aging. At the same time, the country’s GDP per capita is just $8,000. 

In contrast, Georgia’s situation stands out when compared to “rich and young” countries like Israel or Kuwait. In Israel, the median age is 30, and GDP per capita exceeds $50,000. One of the reasons behind Israel’s success is its consistent investment in education and technology, which fuels rapid economic growth. Kuwait’s wealth, meanwhile, largely depends on its oil resources, but its young population provides opportunities for innovation and development.

Another comparison can be made with “young and less affluent” nations like Nigeria and India. In Nigeria, the median age is just 18, creating a vast labor force, but the country still struggles with weak economic infrastructure and governance. While these nations have significant economic growth potential, they also face major challenges in education, infrastructure, and job creation.

For Georgia, the situation is particularly complex. Being in the category of “aged and less affluent” nations hinders the country’s development pace. Aging reduces the labor force, negatively impacting productivity, while social spending continues to grow. Together, these factors slow down economic growth and create additional barriers to progress.

What’s the solution? Georgia needs strategic investments in education, technology, and creating more opportunities for younger generations. Demographic aging is not just a challenge but can also be an opportunity if the right economic policies are implemented. Supporting technological innovation, improving infrastructure, and modernizing the labor market are crucial steps to maintaining economic momentum in the face of aging trends.

Growing rich before growing old – this is Georgia’s main challenge. However, with the right steps, the country can achieve this goal and transform into an economically sustainable society, even as an aging nation.