Purchasing Power Index in Georgia

Purchasing Power Index in Georgia

The Purchasing Power Index measures the ability of the local population to purchase goods and services with their local income, indexed against New York City (NYC = 100). Georgian residents have substantially less purchasing power relative to their incomes than Western European societies – while the absolute cost of living is significantly lower.

What the Index Measures – and What It Doesn't

The purchasing power index (following Numbeo methodology) sets the average net income in relation to local prices. A low index value means: a Georgian worker can afford considerably fewer goods and services with their salary than a New York resident with the median income. For expats with Western salaries, this equation inverts: they bring New York or London purchasing power to a price level that costs only a fraction of what it does at home.

Concrete Cost Comparisons (2024)

• Restaurant lunch (main course): USD 5–8 (London: USD 18–25)
• Monthly rent (1BR, central Tbilisi): USD 500–700 (Berlin: EUR 1,400–1,800)
• Monthly public transport pass: ~USD 15 (Berlin: EUR 86)
• High-speed internet (100 Mbit, unlimited): USD 15–20/month
• GP/dentist appointment: USD 30–60

Rising Prices, Rising Purchasing Power – A Race

Georgia's purchasing power index has been rising in recent years, driven by strong wage growth. Simultaneously, Tbilisi rental and service prices have also increased, particularly after the 2022 migration shock. Net result: purchasing power gains roughly keep pace with price increases, but the cost-of-living paradise Tbilisi of the early 2010s has evolved. For long-term nomads: enter while the price level remains relatively affordable.

Conclusion: Georgia's residents have limited domestic purchasing power by global standards. For Western expats the logic reverses: their salary delivers purchasing power in Tbilisi unmatched in the EU. A fundamental location advantage.

Created: 2026-04-14