Georgia’s education sector has emerged as one of the fastest-growing segments of the economy, with revenues doubling to GEL 4.3bn in 2019-25 and its share to GDP increasing to 6.4% in 2025 from 4.5% in 2019. The sector spans four main segments: general education (GEL 2.1bn), higher education (GEL 1.3bn), pre-school education (GEL 0.7bn), and other education services (GEL 0.2bn). Growth has been broad-based, driven by state-funded expansion in general education and private-sector-led growth in higher education, primarily supported by rising foreign student inflows.
General education revenue reached GEL 2.1bn in 2025, growing at a 14.4% CAGR over 2019-25. Public schools still account for the majority of sector revenues (74.9% in 2025). However, private school revenues more than doubled to GEL 526mn over 2019-25, supported by rising enrollment, higher tuition fees, and a shift toward premium schools. With a declining pupil population, future growth will increasingly depend on market share gains from public-to-private migration, immigration-driven demand, and industry consolidation. On the supply side, Georgia’s teaching workforce is ageing, while the profession remains relatively unattractive due to low wage levels. Although recent government-led salary increases have improved teacher compensation, they have also increased cost pressure across the sector, weighing on profitability. Smaller and weaker schools are less able to absorb rising personnel costs, accelerating consolidation in the fragmented private school market.
Higher education revenue reached GEL 1.3bn in 2025, increasing at an 11.5% CAGR over 2019-25. Private universities captured most of this growth, benefiting from strong international demand. The number of foreign students tripled over 2019-25 to 44,000, lifting Georgia’s inbound mobility rate to 19.8% in 2025 from 9.0% in 2019. Georgia has positioned itself as a competitive destination for international students, supported by affordability and accessibility. However, the sector has become increasingly concentrated, with Indian students accounting for 53.8% of foreign enrollment, largely in health and welfare programs. This concentration creates exposure to changes in a single source market and academic field, making diversification across both student origins and disciplines an important strategic priority.
While international demand supports sector growth, domestic higher education outcomes remain a challenge. Georgia continues to produce a high share of graduates in business, law, and social sciences, while facing shortages in technical & vocational fields. This contributes to weak labor market alignment, reflected in 11% unemployment among highly educated individuals in Georgia (vs 4.8% OECD average). The government’s 2026 higher education reform aims to address structural imbalances through greater specialization, shorter degree structures, and restrictions on foreign enrollment in public universities. While these measures could improve resource allocation and labor market alignment, their ultimate impact will depend on execution quality.
