GDP and GNI per capita in Georgia

2026-07-28

GDP (Gross Domestic Product) and GNI (Gross National Income) differ in what they measure.

● GDP – shows the value of all final goods and services produced in a country during a year, regardless of who produces them (local or foreign companies).

● GNI – shows the total income received by residents of a country. It includes both income received within the country and net primary income received from abroad (e.g., wages, dividends, interest), and subtracts such income paid to foreigners or taken out of the country.

In short:

● GDP answers the question – how much was created in the country?

● GNI answers the question – how much income was received by residents of a country?

For example, if a foreign company operating in Georgia transfers its profits abroad, this amount remains in GDP, but is deducted from the GNP. Conversely, if a Georgian citizen receives income abroad, it is added to the GNP, but is not included in GDP.

The attached table presents data on GDP and GNP in Georgia by year, which shows that the national income per capita of a citizen lags behind the value of wealth created per capita during the year. In other words, no matter how much wealth (GNP) is created in the country, Georgian citizens do not receive as much income.

For comparison, the 2024 data per capita in US dollars - GDP/GNP:

● Denmark - 71,970 / 72,930

● Norway - 89,690 / 102,440

● Finland - 54,990 / 55,530

● Georgia - 9,242 / 8,110

In Denmark, Norway and Finland, the GDP figure exceeds the GDP figure, while in Georgia, on the contrary, the GDP figure exceeds the national income per capita.

When we talk about Georgia's transit potential and logistics capabilities, we must clearly understand the main thing: the Silk Road for Georgia means that Georgian citizens should also be rewarded with dividends from the profits of companies. Which means a higher growth of the gross national income, following the growth of GDP. The main guarantee of fulfilling this condition is the introduction of a market economy in the country.

Explanation: In economics, the concept of a resident is not based on citizenship, but on permanent residence and place of economic activity. Therefore, GNI includes income received by residents of a country, regardless of whether they were received within the country or abroad.

Zurab Maghradze, DBA

 

Source:

● data.worldbank.org

● wdi.worldbank.org