In 8 months, Georgia received a record amount of remittances - $1.5 billion
By Natalia Kochiashvili
Thursday, September 16
The National Statistics Office (Geostat) released preliminary data, according to which in August 2021, compared to July, the subsistence level in Georgia increased.
In July 2021, the subsistence level for able-bodied was GEL218.3, while in August, this figure increased by GEL2.8, bringing the total to GEL221.1. This, in turn, indicates the rising cost of living in the country. For comparison, the annual index increased by GEL38.8, which is a record high growth rate. Compared to March, the subsistence level of the average consumer increased by GEL2.4 in August and amounted to GEL195.8.
The increase in the subsistence level is associated with high inflation, as August saw the highest inflation in the country for the last 10 years - 12.8%.
Starting this year, according to the new statistical work program, the production of this indicator will no longer be carried out by Geostat. As noted in Geostat, this indicator is not used in any planning and decision-making process.
The National Statistics Office sets a subsistence level based on the minimum food basket. The minimum food basket contains the amount of food that is physiologically necessary for the normal life and work capacity of a man of working age. The subsistence food basket consists of 40 products - bread, cereals, meat, dairy products, vegetables, and confectionery.
Geostat also published the average wage statistics in the country as of the second quarter of 2021. According to the agency, it is GEL1,328, which is GEL177.9 more than the previous year. The average income tax paid by one employee is GEL265.6 per month.
According to Geostat, the highest average salary in the country is still in the financial sector and the lowest in professional, scientific, and technical activities.
In the second quarter of 2021, the average salary of women was set at GEL1,07.7.8 and that of men at GEL1,560.
Minister of Economy and Sustainable Development Natia Turnava responded that the remuneration of employees in several sectors has improved due to the recovery of the economy, which ‘is very important and in principle inevitable when the economy is healthy.’
Besides that, the volume of remittances in the country in August 2021 amounted to $204.9 million, which is 11.2% or $20.7 million more than the same figure in August 2020.
In January-August 2021, a record large amount of remittances, $ 1.5 billion, was transferred to Georgia - according to the National Bank, remittances are 30% higher than the previous year.
According to the National Bank, 94.4% of remittances to Georgia come from the 20 largest partner countries. Russia is the leader in terms of remittances, followed by Italy, the United States, Greece, and Israel.
According to the latest estimates of the World Bank, based on 2019 data, remittances account for 13% of Georgia's GDP, which is the 21st position in the world and the highest rate. The rate of higher dependence on remittances is only in the poorest developing and poorer post-Soviet countries than in Georgia.
