The European Bank for Reconstruction and Development (EBRD) reports that Georgia’s economy grew by 9.4% in 2024, outperforming projections and exceeding the previous year’s 7.8% growth. Despite a decline in war-related financial inflows and a slowdown in Russian migration, domestic consumption stayed strong thanks to rising wages and credit activity.
Inflation remained subdued, averaging 1.1% for the year but started to pick up in late 2024, driven mainly by food prices. As of March 2025, inflation reached 3.5% year-on-year, slightly above the National Bank of Georgia’s 3% target. The central bank has maintained a cautious monetary stance to support growth.
As of now, real GDP growth is forecast to ease to 6% in 2025 and 5% in 2026, getting closer to the country’s potential. Public investment in transport, energy and digital infrastructure is expected to support this momentum.
However, political uncertainty and the EU accession freeze could impact investor confidence and halt export growth. Other risks include weaker external demand, increased tariffs and slower credit expansion.
