Indexes
Quarter 4, 2025 Macro Review | Georgia: inflation above target, growth converging, and an external balance that still holds
SUMMARY
Economic activity remained strong through the end of 2025, although the pace of expansion continued to normalize. According to preliminary estimates, real GDP growth reached 7.5% in 2025, indicating that output was still expanding above Georgia’s longer-run trend even as the economy gradually converged toward potential. The growth mix remained favorable: less import-intensive and relatively high-productivity sectors continued to play a central role, while domestic demand showed clearer signs of normalization under still-tight monetary conditions.
Inflation remained above the 3% target around the turn of the year, but the composition of price pressures still points to a largely temporary shock profile. Realized average inflation in 2025 amounted to 3.9%, while as of January 2026 headline inflation stood at 4.8% y/y. The increase was driven mainly by food prices, one-off domestic price adjustments, and volatility in agricultural products. At the same time, underlying inflation remained much more contained: core inflation stood at 2.1%, while services inflation reached 3.0%, suggesting that broader inflation expectations remained relatively stable.
The external position improved further by the end of 2025. Structural shifts toward less import-intensive sectors, weaker import growth, stronger services exports, and firmer remittance inflows all supported the current account. Tourism revenues increased by 6.0% in 2025, ICT exports remained high at 2.9% of GDP in the first three quarters of the year, and remittances rose by 8.5% annually. Against this backdrop, the current account deficit improved relative to its estimated long-term equilibrium of about 5% of GDP, while exchange-rate conditions remained broadly supportive of macroeconomic stability and deposit dollarization declined to 47.7% by year-end.
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Q3 2025 Macro Review | Services momentum, external resilience
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January
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According to preliminary indicators, real GDP grew about 6.5% y/y in Q3 2025 (Figure 1), easing from 7.3% in Q2 but still above the pre-2022 norm. Expansion remained services-led: summer tourism, ICT, and transport did most of the lifting, while manufacturing and construction/utilities were softer as re-exports normalized.
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 1, 2025 Macro Review | Sustained growth and stability in an uncertain global landscape
01
July
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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%).
Quarter 4, 2024 Macro Review | Georgia’s economic performance in Q4 2024: strong growth amidst stabilizing inflation and shifting external dynamics
28
February
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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
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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%.
