Indexes
Quarter 1, 2025 Macro Review | Sustained growth and stability in an uncertain global landscape
01
July
2025
SUMMARY
According to GeoStat’s preliminary estimates in the first quarter of 2025, Georgia’s nominal GDP reached GEL 21,798.2 million, with a year-over-year real GDP growth of 9.8% and a GDP deflator change of 3.4%. The economic expansion was largely driven by strong growth in several key sectors. The most notable increases were observed in Education (+27.7%), Information and communication (+28.5%), Administrative and support service activities (29.7%), Human health and social work activities (17.9%). These sectors played a major role in boosting overall economic activity. Conversely, the sharpest contractions were recorded in Activities of households as employers (-3.3%), Agriculture, forestry and fishing (-4.6%), and Electricity, gas, steam and air conditioning supply (-5.1%), slightly offsetting the broader gains. The projected real GDP growth for 2025 from NBG is 6,7%, which is above the WB projection of 5.5% y/y growth, and the IMF projection of 6% y/y growth (Figure 1).
In the first quarter of 2025, the Georgian Lari (GEL) showed divergent movements across trading partners. GEL appreciated notably against the US dollar, driven by the global weakening of the dollar, which helped reduce imported inflation pressures and improve external debt service conditions. In contrast, the GEL depreciated against the Euro and other major currencies, which had appreciated more strongly against the dollar. As a result, the nominal effective exchange rate (NEER) recorded a slight quarterly depreciation, while the real effective exchange rate (REER) depreciated by 1.3% on a quarterly basis, but appreciated 0.6% year-on-year, primarily due to Georgia’s lower inflation relative to its trading partners. This real appreciation was especially notable against the Russian Ruble, which continued to experience elevated inflation. Despite the nominal weakening of the GEL against certain partners, the REER trend helped maintain Georgia’s international competitiveness. Overall, the exchange rate developments in Q1 2025 continued to support the disinflationary environment and contributed to a stable external position (NBG, May 2025).
Compared to the increasing unemployment in Q1 of 2024 (14 %), the unemployment rate in Q1 of 2025 rose to 14.7 (Geostat). Average annual labor force participation has also decreased by 0.2pp, reaching 54.8%. Based on Geostat’s preliminary estimate, in the first quarter of 2025, average monthly nominal earnings amounted 2170.5 GEL.
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Q2 2025 Macro Review | Services momentum, external resilience, and policy steadiness
06
October
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According to GeoStat’s preliminary estimates in the second quarter of 2025, Georgia’s nominal GDP reached GEL 25 347.0 million, with a year-over-year real GDP growth of 7.3% and a GDP deflator change of 4.8%. Per-capita GDP stood at GEL 6,842. The economic expansion was largely driven by strong growth in several key sectors.
Quarter 4, 2024 Macro Review | Georgia’s economic performance in Q4 2024: strong growth amidst stabilizing inflation and shifting external dynamics
28
February
2025
According to GeoStat’s preliminary estimates in the fourth quarter of 2024, Georgia’s nominal GDP reached GEL 25,309.6 million, with a year-over-year real GDP growth of 8.3% and a GDP deflator change of 4.0%. The economic expansion was largely driven by strong growth in several key sectors. The most notable increases were observed in Education (+36.2%), Information and communication (+29.7%), Human health and social work activities (23.6%), Mining and quarrying (22.5%).
Quarter 3, 2024 Macro Review | Economic progress under pressure: Georgia’s Q3 2024 growth and challenges
08
January
2025
According to GeoStat’s preliminary estimates in the second quarter of 2024, Georgia’s nominal GDP reached GEL 24,855.7 million, with a year-over-year real GDP growth of 11.0% and a GDP deflator change of 4.3%. The growth was driven by significant increases in value-added across various sectors: Education activities rose by 35.6%, Information and communication rose by 32.8%, Construction by 30.9%, Financial and insurance activities by 22.9%, Public administration and defense, including social security by 14.7% and Wholesale and retail trade, including repair of motor vehicles and motorcycles by 11%. Conversely, there was a decline in value-added in electricity, gas, steam, and air conditioning supply by 13.6% and in Real estate activities by 4.9%.
Quarter 2, 2024 Macro Review | Strong gdp growth driven by key sectors amid global and domestic challenges
02
October
2024
According to GeoStat’s preliminary estimates in the second quarter of 2024, Georgia’s nominal GDP reached GEL 22,101.7 million, with a year-over-year real GDP growth of 9.6% and a GDP deflator change of 2.5%. The growth was driven by significant increases in value-added across various sectors: Accommodation and food service activities rose by 35.7%, Education by 21.3%, household activities as employers and producers of goods and services for personal use by 17.3%, Transportation and storage by 16.1%, Public administration and defense, including social security, by 13.3%, and Construction by 13%.
Quarter 1, 2024 Macro Review | Georgia’s robust growth amid global recovery challenges
28
June
2024
According to GeoStat’s preliminary estimates in the first quarter of 2024, Georgia’s nominal GDP reached GEL 18,913.2 million, with a year-over-year real GDP growth of 8.4% and a GDP deflator change of 3.1%. The growth was driven by significant increases in value-added across various sectors: Real estate activities rose by 18.8%, Education by 29.1%, Public administration and defence, including social security, by 13.0%, Construction by 10.3%, Information and communication by 12.2%, and Transportation and storage by 9.7%.
