Georgia’s economy experienced substantial growth in February, reaching 8.8% according to recent figures. This positive trend aligns with projections from Moody’s, which anticipates continued economic growth of 6% for 2026. The National Statistics Bureau attributes this expansion to key sectors including IT and communication, transport and storage, financial activities, manufacturing, and mining.
In March, Moody’s revised its growth forecast upwards from 5.5% to 6% following a comprehensive review of Georgia’s economic situation. Furthermore, the credit rating firm forecasts that Georgia’s foreign exchange reserves will increase to $6.1 billion by 2027, building upon $5.6 billion at the start of 2026 and $4.7 billion in 2025. Governor Natia Turnava noted that these projections resulted from collaborative discussions involving Moody’s, the finance ministry, and commercial banks.
The government’s successful refinancing of its Eurobond obligations in January 2026, through the issuance of $500 million bonds with a 5.1% coupon, also contributed to this positive outlook. Georgia maintains a Ba2 credit rating, reflecting continued growth despite geopolitical challenges. Real GDP growth averaged 7.5% in 2025, surpassing comparable nations at 3.6%.
This growth was fueled by domestic demand, rising wages, and infrastructure investments, though demographic constraints and agricultural productivity remain concerns. Future growth is expected to slow to approximately 6% in 2026. The fiscal deficit decreased to 1.2% of GDP, and the debt burden remains at 34.5% of GDP.
The external sector saw strong goods exports, while the current account deficit narrowed significantly. Moody’s highlights the Middle Corridor’s role in strengthening Georgia’s external sector. The outlook could stabilize with reduced political risks and improved governance.
Topics: #growth #georgia #gdp
