According to International Monetary Fund (IMF), in 2016 averaged annual income per capita in Georgia made up 10 044 USD, based on purchasing power parity (PPP).
This indicator makes Georgia 108th worldwide among 190 countries. The country ranked 108th in 2015 too. According to IFM forecasts, in 2017 income per capita in Georgia will rise to 10 645 (PPP).
Annual averaged income per capita is the widespread indicator for estimating country wealth and economic development. When we compare various countries, the so-called international dollar (PPP) must be used to measure incomes. This instrument implies factor that the Dollar has various purchasing power in various countries.
According to 2016 IMF report, the highest income per capita (PPP) is recorded in Qatar – 127 660 USD. Luxembourg is second with 104 000 USD. Central African Republic is the poorest country with annual 684 USD.
In our neighborhood, annual income per capita is 26 490 USD in Russia, 24 900 USD in Turkey, 17 440 USD in Azerbaijan, 8 621 USD in Armenia and 8 305 USD in Ukraine.
According to IMF information, the list of countries with the highest income per capita in 2016 is as follows:
Country USD (PPP)
- Qatar 127 660
- Luxembourg 104 000
- Macau 95 151
- Singapore 87 855
- Brunei 76 884
- Kuwait 71 887
- Norway 69 249
- Ireland 69 231
- United Arab Emirates 67 871
- Switzerland 59 561
It should be noted that Georgia comes behind almost all European countries in terms of GDP per capita, excluding Moldova and Bosnia Herzegovina. At the same time, Armenia and Ukraine are behind Georgia in the same category, however, it is also worth noting that several African countries are richer than Georgia.
As noted above, according to IMF indicators, in 2016 annual averaged income per capita in Georgia marked 10 100 PPP Dollar and this figure brought Georgia behind 11 African countries.
According to the 2016 IMF report, Equatorial Guinea is the richest African country with 39 699 Dollar income per capita. Guinea is rich of oil. Seychelles come second with 28 148 Dollars. Seychelles is a small country on island with about 100 000 residents. Before 1976 it was a colony of France and today it is one of the best places for nautical tourism. Mauritius is third with 20 5252 Dollar. It is a small country on island that was a British colony before 1968. The country has high-developed tourism sector.
African countries richer than Georgia in terms of income per capita due to PPP Dollar are as follows: Equatorial Guinea – 38 699; Seychelles Islands – 28 148; Mauritius – 20 525; Gabon – 19 252; Botswana – 16 948; Algiers – 14 950; Libya – 14 236; South Africa – 13 179; Egypt – 12 137; Namibia – 11 756; Tunis – 11 657.
According to IMF forecasts, in 2017 in Georgia income per capita will rise to 10 645 (PPP). Developed economies will grow by 2% and developing economies will rise by 4.5%. Several weeks ago IMF reduced Georgia’s economic growth forecast for 2017 to 3.5% from 5.2%. In 2016 Georgia ranked 98th worldwide with 2.7% economic growth, while the country occupies 75th place due to the 2017 forecast (3.5%).
According to IMF forecast, Georgia’s planned economic growth forecast in 2017 comes behind economic growth forecast for averaged developing countries. Under IMF prognosis, economic growth will record 3.5% in 2017, down as compared to Georgian Government’s forecast.
Today Georgia’s GDP per capita is 7-8 times smaller compared to averaged European level. Provided EU economy grows by annual averaged 2%, our economy must increase by at least 7-8% every year.
Even amid 5% averaged economic growth, Georgian economy will be twice smaller than averaged European economy after 50 years. To come up with EU level in 50 years, our country needs at least 7% and higher economic growth. 7% Economic growth will enable us to come up with European living standards in 40 years, while 10% growth will take only 25 years.
We remind you that government’s economic growth forecast is 4%. In January 2017 GDP growth constituted 5.2%, February – 4.4% and March – 5.3%.