The Economics of Tbilisi’s Traffic Jams: What Does Lost Time Really Cost, and How Do We Calculate These Losses?

Traffic congestion in Tbilisi is no longer just a transportation issue—it has become a serious economic concern for the city. Over recent years, the number of registered vehicles in the Georgian capital has steadily increased, surpassing 600,000 by 2023. This figure marks an approximately 25% increase in just the past five years, yet the city’s road infrastructure has remained virtually unchanged. With road length and capacity static, congestion inevitably worsens daily.

Several factors contribute to the escalation of traffic problems. One critical reason is the inadequacy of public transportation infrastructure in meeting growing demand. Over the past two decades, Tbilisi’s metro system has remained virtually unchanged with just 23 stations, despite a 15–20% increase in the city’s population. Though the municipal bus fleet has been partially renewed in recent years, the current capacity still does not fully address the city’s transportation demands. Additionally, the city’s urban planning often prioritizes residential and commercial developments without simultaneously upgrading transportation infrastructure, exacerbating the traffic crisis further.

As a result, an average driver in Tbilisi currently spends around 1 to 1.5 hours per day stuck in traffic. This adds up to roughly 7–10 hours weekly, or 350–500 hours annually per individual.

When these individual losses are multiplied across the approximately 600,000 vehicles in Tbilisi, the city loses an estimated 200 million work-hours annually. Valued at an average hourly wage of about 12–14 GEL, this amounts to a total potential economic loss of approximately 2.4–2.8 billion GEL per year—almost double the annual municipal budget of Tbilisi, which is about 1.6 billion GEL for 2024.

In addition to lost productivity time, there are other significant costs, including increased fuel consumption, which rises by around 20–25% due to traffic congestion, adding another estimated 250–300 million GEL per year directly borne by vehicle owners. Furthermore, vehicle maintenance costs increase significantly as constant stopping and starting wear down engines and braking systems more quickly, adding potentially tens of millions of GEL to annual expenditures for residents.

Another severe aspect of Tbilisi’s traffic congestion is its impact on public health. According to the World Health Organization, air pollution, significantly driven by vehicle emissions, results in approximately 3,000 premature deaths annually in Georgia, with a considerable proportion linked directly to transportation pollution in Tbilisi. The resulting healthcare expenses, lost workdays, and treatment costs add millions more to the overall economic losses, though precise calculations are notoriously difficult.

However, despite this detailed analysis, it’s important to acknowledge that these estimates rely on assumptions and approximations, making exact calculations challenging. For instance, not every hour spent in traffic can directly be translated into lost productivity, nor does an average hourly wage accurately reflect the diverse economic realities of all residents.

Nevertheless, these estimates clearly highlight the magnitude of the traffic problem and underscore the urgency for Tbilisi to reform its transportation policies. Effective solutions could involve actively developing public transportation, particularly expanding the metro network and increasing bus fleet capacity. Additionally, revising urban planning policies to integrate transportation infrastructure with residential and commercial development is crucial.