This study examines the relationship between the indebtedness of the Georgian households and outward migration flows from Georgia. Both of these issues have long been discussed on the social and political agenda in Georgia, since the former is seen as one of the major obstacles to the nation's socioeconomic development and the latter as a major challenge to the country's demography and in the meantime a significant source of income for households with migrant members.

The main assumption of the study is that Georgian household indebtedness, as it has reached unsustainable levels at some point, had become one of the major drivers for economic emigration from Georgia to higher-income countries.

After reviewing the main macroeconomic trends of the country, the study attempts to examine Georgian financial policies carried out since 2004 to these days. During this study, high-level financial and political figures were interviewed, such as the former CEO of one of the largest Bank of Georgia, the former president of the National Bank of Georgia and the MP of Georgia, as well as the head of the Financial Stability Department of the NBG, in order to give the insights on the household indebtedness from both, private and regulatory side of the Georgian financial sector.

Following qualitative analysis, the Caucasus Barometer, an annual household survey conducted by the Caucasus Research Center on social-economic issues and political attitudes in Georgia, was utilized to quantitatively support the research subject. By employing logistic regression, this study attempts to demonstrate the link between excessive household indebtedness and emigration flows from Georgia to higher-income countries.