United Nations’ latest World Economic Situation and Prospects 2026 (WESP 2026) stated that Georgia is expected to remain one of the fastest-growing economies in the Caucasus and Central Asia in 2026.
The UN estimates that Georgia’s economy expanded by 7.5% in 2025 and projects growth of 5.4% in 2026. This forecast exceeds the Georgian government’s main assumption of 5% growth embedded in the 2026 state budget by 0.4 percentage points.
The report notes that the advantages previously gained by smaller economies, including Georgia, from acting as intermediaries in trade with Russia are gradually fading. However, this trend is being largely offset by resilient domestic demand, driven by ongoing infrastructure investment and strong inflows of remittances. In 2024, remittances accounted for an estimated 13–15% of Georgia’s GDP.
In a regional comparison, Georgia is projected to outperform most neighboring economies in 2026. The UN forecasts growth of 4.8% in Armenia, 4.6% in Kazakhstan, 3.9% in Turkey, 2.7% in Azerbaijan, 2.3% in Ukraine and just 1% in Russia.
Despite the favorable outlook, the UN highlights several structural challenges facing Georgia and other countries in the region. These include renewed inflationary pressures observed in 2025, persistent gaps in infrastructure and technology, particularly in digitalization and agricultural productivity, and elevated geopolitical risks linked to the war in Ukraine and sanctions on Russia.
