ECONOMIC COMPLEXITY INDEX (ECI) AS BEST INDICATOR FOR GROWTH PREDICTION

Abstract

The complexity of the economy implies two factors operating for the same purpose. On the one hand, the more goods a country produces, the more complex its economy becomes. On the other hand, the complexity varies depending on how many other countries can produce the same goods. Georgia is as complex as expected in terms of its income level. As a result, it is planned to develop its economy moderately. Growth Lab's 2028 growth forecast for Georgia is projected at 4.2% annual growth over the next decade, making it one of the top twenty countries globally. As soon as innovation is introduced, people start striving to use it. That is, they are copying it in some way. Meanwhile, after this copying, more and more opportunities to use this particular innovation are revealed, which in turn leads to an increase in revenue. This happens every 50-60 years.