Tbilisi City Review

Cities

About This Report

Nov 2017

Tbilisi is among the fastest growing Eastern European cities, with real GDP growth of 31% over 2011-2016. In 2016, the city had 1.4 million inhabitants, and accounted for almost two thirds of Georgia's total GDP. Consumer expenditure growth (+42%) was the main component behind booming commercial real estate market in Tbilisi over 2011-2016). The capital city has been receiving huge flows of international investment into the hospitality and tourism markets.

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Tbilisi City Review

TBILISI HIGHLIGHTS

Tbilisi, the capital of Georgia, is the powerhouse of the country's economy, and serves as its primary industrial, commercial and cultural centre. Mainly due to the positive impact of a developed, progressive infrastructure and a highly educated labour force (45% of residents aged 15+ have higher education in Tbilisi), labour productivity in the city was more than five times higher than in the rest of the country in 2016.

Lower employment rate offsets the labour productivity advantage

Despite its significant labour productivity advantage, Tbilisi recorded only 29% higher disposable income per household than elsewhere in the country as of 2016. A lower employment rate in the capital (43% versus 88% in the rest of Georgia in 2016) offsets the positive labour productivity impact on household earnings.

Poor standard of living

Consumer expenditure per household (excluding transport and housing) was 22% higher in Tbilisi than in the rest of the country in 2016. However, compared to other major Eastern European cities, a particularly large share of consumer spending in Tbilisi goes on food and non-alcoholic beverages (28% in 2016), indicating the poor standard of living in the city.

Fairly expensive city to live in

Compared to other regions of Georgia, Tbilisi is a rather expensive city to live in. Combined expenditure on transport and housing per household was 36% higher in the city than in the rest of the country in 2016.

Tbilisi City Review

TBILISI REVIEW AT A GLANCE

Understanding Tbilisi Review structure
Chart 1 Overview
Key facts on Tbilisi
Summary 1 Key Facts On Tbilisi 2011, 2016, 2021

TBILISI HIGHLIGHTS

History
Delimitation of the metropolitan region
Chart 2 Map Of Tbilisi Metropolitan Area
Main business districts

ECONOMY OF THE CITY

Industrial make-up
Chart 3 Industrial Composition Of Tbilisi 2016
Chart 4 Labour Productivity: Selected Cities 2016
Recent developments and outlook
Chart 5 Dynamics Of Real GDP In Tbilisi, Georgia And Other Cities In Eastern Europe, 2011-2021
Summary 2 Labour Market Changes In Tbilisi 2011, 2016

CONSUMER PROFILE

City demographics
Chart 6 Population By Age 2016
Chart 7 Drivers Of Population Growth In Tbilisi 2011-2016
Household income
Chart 8 Household Distribution By Income In Tbilisi 2016 And 2021

CONSUMER EXPENDITURE

Structure of household budget
Chart 9 Comparison Of Household Expenditure In Tbilisi And Georgia, 2016
Summary 3 Tbilisi Household Budget Structure By Consumer Expenditure Item, % of total, 2011, 2016, 2021
City lifestyle
Development Of Tourism Infrastructure
A Bitcoin Farming Potential
City affordability
Housing
Chart 10 Household Expenditure On Housing: Selected Cities 2016
Transport
Chart 11 Household Expenditure On Transport: Selected Cities 2016

DEFINITIONS

APPENDIX

Summary 4 GDP Development, 2011, 2016, 2021
Summary 5 GDP By Origin, Current Prices, US$, Million, 2011-2016
Summary 6 Population And Labour Force, 2011-2016
Summary 7 Employed Population By Economic Sector, % of total, 2011-2016
Summary 8 Population By Sex And Broad Age Groups, ‘000, 2011-2016
Summary 9 Population Growth, 2011-2016
Summary 10 Forecast Population Growth
Summary 11 Population By Educational Attainment, 2011-2016
Summary 12 Structure Of Consumer Expenditure By Main Category, 2011-2016
Summary 13 Consumer Expenditure By Main Category, Per Household, Constant (2016) Prices, US$, 2011, 2016, 2021
Summary 14 Households By Income Band, % Of Total, Constant (2016) Prices 2011, 2016, 2021
Summary 15 Households By Income Band, ‘000, Current Prices 2011-2016
Summary 16 Inflation, 2011-2016
Summary 17 Transport Indicators, 2011-2016
Summary 18 Possession of Consumer Durables, % of Households, 2011, 2016, 2021