World Bank: Georgia ranks top 3 globally for 21st-century productivity gains, second in annual growth

The World Bank has released its 2024 labour productivity results, revealing remarkable growth in Georgia. Labour productivity, measured as the level of purchasing power parity gross domestic product (GDP) per employed person at constant prices, surged by an impressive 10.4 percent in Georgia, exceeding 56,608 international dollars.

This double-digit annual growth rate, exceeding 10 percent, positions Georgia as the second-highest globally after Guyana. Furthermore, Georgia takes the top spot in Eurasia and the entire Eastern Hemisphere for labour productivity progress.

Georgia also stands among the top three countries for labour productivity improvement in the 21st century. Over the 24-year period of this century, labour productivity has seen the most significant increase in Guyana (786 percent), followed by China (506 percent), and then Georgia, with a substantial 340 percent increase.

In contrast to Georgia's robust performance, the World Bank's assessment highlights a concerningly low annual growth in labour productivity among European Union member states. The growth rate in the EU for 2024 was less than 1 percent. Even more notably, Iceland, Ireland, Austria, Italy, and Finland experienced a decline in labor productivity.

“Labor productivity is used to assess a country’s economic capacity to generate and maintain decent employment with fair and adequate wages. Gains from investment, trade, technological progress, or improved work organisation can enhance social protection and reduce poverty, thereby mitigating vulnerable employment and in-work poverty”, the World Bank said.

The report further explained that GDP per employed person was a key measure for tracking whether a country was on track to achieve the Sustainable Development Goal, inclusive and sustainable economic growth, full and productive employment, and decent work for all.