Genuine progress indicator
Most economists assess progress in people's welfare by comparing the gross domestic product over time—that is, by adding up the annual dollar value of all goods and services produced within a country over successive years. However, GDP was not intended to be used for such purpose. It is prone to productivism or consumerism, over-valuing production and consumption of goods, and not reflecting improvement in human well-being. It also does not distinguish between money spent for new production and money spent to repair negative outcomes from previous expenditure. For example, it would treat as equivalent one million dollars spent to build new homes and one million dollars spent in aid relief to those whose homes have been destroyed, despite these expenditures arguably not representing the same kind of progress. This is relevant for example when considering the true costs of development that destroys wetlands and hence exacerbate flood damages. Simon Kuznets, the inventor of the concept of GDP, noted in his first report to the US Congress in 1934:the welfare of a nation can scarcely be inferred from a measure of national income. If the GDP is up, why is America down? Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.
Tbilisi
With a GDP at basic prices of 12,147 Million Georgian lari(€4.3 billion) in 2014, Tbilisi is the economic center of the country, generating almost 50 percent of Georgia's GDP. The service sector, including government services, is dominating and contributes 88 percent to GDP. Its GDP per capita of 10,336 Georgian Lari(€3,600) is exceeding the national average by more than 50 percent. The service sector itself is dominated by the wholesale and retail trade sector, reflecting the role of Tbilisi as transit and logistics hub for the country and the South Caucasus. The manufacturing sector contributes only 12 percent to Tbilisi's GDP, but is much larger, by employment and total value added, than the manufacturing sectors in any other region of Georgia. The unemployment rate in Tbilisi is – with 22.5 percent – significantly higher in Tbilisi than in the regions.