Summary 

A digital economy is an economy based on digital technologies. It has become impossible to identify a direction that is not based on digital technologies. All sectors of the economy have undergone significant changes in recent years. Adoption of digital technologies and digital transformation have fundamentally changed manufacturing processes, organizational relationships, forms of customer communication, and how consumers receive products and services. The COVID-19 pandemic has further accelerated the process of digital transformation, making it an even more pressing issue for countries to ensure rapid preparation and adaptation.

The importance of digital technology development is also mentioned in the United Nations Sustainable Development Goals, which state that access to information and communication technologies, adoption of digital technologies, and the elimination of digital inequality are key factors in ensuring sustainable development. Individual countries' ability to effectively manage information, the most strategic asset of our time, is a major challenge in achieving the goals of sustainable development, because data is multidimensional and its proper use affects not only economic development but also human rights, security, the environment, and peace.

This report brings together what we should know about Digital Economy. The essence and theoretical foundations of digital economics are discussed. In the digital economy, the mechanism of value formation has been defined. The impact of the digital economy's development on the country's economy is presented. The level of digital readiness of Georgia is assessed based on available data, allowing us to determine the current state of development of the digital economy in Georgia and future development prospects.

According to the research, Georgia has a medium level of development in the digital economy and digital readiness in comparison to the other countries in the region, but it has a high growth potential. The activities of the Data Exchange Agency, the development of the draft e-commerce law, and the e-Georgia strategy can all be assessed positively. It is also worth mentioning that the implementation and adaptation of information and communication technologies in education is currently underway. The use of the European model of telecommunications regulations, as well as the improvement of electronic customs procedures, is a step forward. Public services are also being successfully digitized. The creation of platforms by the Public Service Development and Data Exchange Agency, where it is possible to receive a variety of services in all directions online, and the creation of a unified portal of electronic services www.my.gov.ge, is a positive step.