Fitch Ratings says inflation in Georgia is expected to gradually decline toward the National Bank of Georgia’s 3% target after a recent surge driven by higher energy prices.
In its latest report, Fitch noted that inflation rose to 5.9% in April 2026, mainly due to increased energy costs.
In response, the National Bank of Georgia raised its policy rate by 25 basis points to 8.25% in early May and signaled additional monetary tightening in the coming months.
“Real interest rates are positive, despite higher inflation, reducing depreciation and second-round inflationary risks,” Fitch stated.
The agency forecasts inflation will remain elevated in the near term before gradually easing toward the central bank’s 3% target.
Fitch also said Georgia’s economic growth remains strong despite inflationary pressures. The agency expects GDP growth to slow moderately to around 6.5% in 2026, while remaining above the average for countries with similar credit ratings.
The report highlighted that household consumption continues to be supported by rising real disposable incomes, while investments and net exports also contribute positively to growth.
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