Geostat published preliminary data revealing that Georgia’s economy expanded by 6.3% in June 2025. Primary contributions came from information and communication, manufacturing, transport, and trade. But some economists warn the figures may overstate the real impact of the tech sector on the domestic economy.
Despite a strong start to the year, 8.3% growth in the first half of 2025, the pace is slowing. Monthly growth dropped from 7.5% in April and May to 6.3% in June. Additional indicators, including VAT-paying company turnover, suggest a broader deceleration.
Growth in information and communication was largely driven by computer programming, IT consulting and related services. However, economist Soso Berikashvili cautions that much of this reported activity may be limited to turnover on paper.
“Foreign IT firms are attracted by Georgia’s low-tax environment and often register locally,” Berikashvili said. “But they frequently operate remotely, don’t pay local income taxes, and contribute little to job creation or reinvestment.”
Berikashvili emphasized that while Geostat’s reporting is technically accurate, the structure of the current system inflates economic performance without reflecting improvements in citizens’ lives or national revenue.
