Georgian Prime Minister Irakli Kobakhidze stated that prices in Georgia are “nominally lower than in France, Germany, and other European countries, particularly in Western Europe.”
He described this as “natural” because, according to him, wages in Georgia are significantly lower.
During a debate on the pro-government Imedi TV, Kobakhidze stated that, according to data for the last quarter, the average salary in Georgia is approximately 2,400 GEL (up to $900), while in France it is about 2,680 euros, which represents a very large difference.
“The overall picture is as follows: when we analyzed prices more deeply and assessed the most representative consumer basket of essential goods, comparing prices in Georgia and France using absolutely comparable products, we concluded that purchasing an identical item in France is approximately 50% more expensive than in Georgia. This is the general situation.
However, there are certain categories of goods—primarily products from specific brands that are identical in both Georgia and, for example, France, such as a particular brand of coffee or chocolate spread—which, for some reason, cost much more here than in France.
Overall, the picture is the opposite, but there are individual items where prices are much higher, and this requires further study: whether this is linked, for example, to the monopoly position of a distributor or importer, or potential cartel agreements regarding specific goods.
In general, our prices are nominally lower than in France, Germany, and other Eurozone countries; however, the second point is that wages in Georgia are significantly lower. Our average salary is about 4,200 GEL, while in France it is an average of 2,680 euros. The difference is large,” Irakli Kobakhidze noted.
The head of government added that if today’s situation in Georgia and France is compared, taking into account all factors—nominal income, expenses, and so on—a French citizen today lives, presumably, twice as well as a Georgian citizen.
“It is important to emphasize that in 2012, this difference was fourfold, and today it is twofold. The gap has been halved, but as you can see, much remains to be done,” Kobakhidze stated.
According to the Georgian Prime Minister, the average salary in Georgia today should be approximately up to 5,000 GEL ($1,866) for a citizen of the country to live at the same level as a French citizen.
“It needs to double, and that takes years. Even basic economic theory suggests this. This is the general reality. Nominal prices are one thing, and their relationship to wages and other factors is another.
Added to this is the still quite high level of poverty. About 350,000 of our fellow citizens live below the poverty line, and pensions remain very low.
Against this backdrop, the interest in reducing prices becomes even more relevant. If we had the same wages and pensions as the respective countries, the issue of prices would not be so painful.
But taking all these factors into account, the drive to lower prices in our case is very pronounced, and there are objective reasons for this,” the Georgian Prime Minister stated.
As a reminder, a parliamentary commission in Georgia has completed an investigation into how prices for food, medicine, and fuel are formed and has prepared a report.
The operations of dozens of companies were studied, and prices in Georgia were compared with those in European countries.
The commission pointed to potential problems where individual importers or distributors effectively control the market and can influence the cost of goods.
The report indicates that policy should be aimed not at administrative price controls, but at structural market improvements, increasing transparency, and the efficiency of supply chains.
It is proposed to strengthen oversight of monopolies and make the price formation process more transparent—so that it is clearer why a product costs exactly what it does.
