TOPIC OF THE WEEK: From tech boom to lasting wealth—Armenia vs Georgia
The Georgian press enthusiastically reported last week almost US$850mn in ICT export revenues in the first half of the year. This has prompted me to evaluate whether the post-2022 ICT boom has generated lasting gains in GDP, jobs, income and FX earnings, and whether Georgia or Armenia is better positioned to retain these benefits over the medium term.
My conclusion is that Armenia has a slight advantage over the medium term thanks to the strong state of its current ICT infrastructure, more robust R&D foundations and deeper links with international technology companies. This is, however, a qualitative assessment rather than a statistically established ranking. Moreover, the data from 2025 and 1H26 strengthen Georgia’s investor case on slightly greater dollar ICT receipts, faster real sector growth and stronger payroll growth. This structural ranking is only conditional and should not be taken as a prediction that Armenia will also perform better in the future.
The central investor takeaway is that both Armenia and Georgia appear to have converted the post-2022 relocation shock into a lasting increase in economic activity, but neither has yet demonstrated a permanently higher underlying growth rate. Armenia retains a modest qualitative advantage in technological depth, while Georgia is rapidly closing the gap in economic performance. Ultimately, the winner will be determined less by the initial relocation boom than by which country can retain talent, deepen domestic technological capabilities and translate today's ICT expansion into sustained productivity growth.
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