World Bank’s latest report, ‘Global Economic Prospects 2026’, states that Georgia is expected to maintain good economic growth in 2026, although at a slower pace than in the previous year. The outlook shows broader regional and global headwinds affecting the Caucasus and Central Asia.
After expanding by an estimated 7% in 2025, Georgia’s economy is projected to grow by 5.5% in 2026. This forecast exceeds the government’s official projection by 0.5 percentage points as the 2026 state budget is based on a 5% growth assumption.
Across the region, the World Bank anticipates moderate growth trends. Average economic expansion in the South Caucasus is expected to reach 3.3% in 2026. Armenia is forecast to grow by 4.9%, while Azerbaijan’s growth is projected at 1.8%, constrained by weak hydrocarbon output, declining oil prices and tight fiscal policy. Turkey’s economy is expected to expand by 3.7%, Ukraine by 2%, Russia by 0.8% and Kazakhstan by 4.5%.
The report notes that in both Georgia and Armenia, economic activity is likely to normalize following several years of exceptionally strong growth. It also shows that the preliminary peace agreement reached between Armenia and Azerbaijan in August 2025 could enhance regional stability.
