The economy grew by 7.7 per cent year on year in the first three quarters of 2025, showing signs of gradual deceleration as year-on-year growth slowed from 9.9 per cent in the first quarter to 7.4 per cent in the second quarter and 6.4 per cent in the third quarter, reads the report, issued by the European Bank for Reconstruction and Development.

“Growth was propelled by services sectors, with strong contributions from information and communications technology (ICT), education, transportation and storage. Domestic demand was supported by rising wages and robust credit growth. Headline inflation breached the central bank’s 3 per cent target, averaging 3.9 per cent in 2025. The National Bank of Georgia kept the policy rate unchanged at 8.0 per cent throughout the year, expecting inflation to retreat to the target. On a four-quarter rolling sum basis, the current account deficit narrowed from 5.2 per cent of GDP a year earlier to 3.5 per cent of GDP in the third quarter of 2025.

Official reserve assets rebounded from a low of US$ 4.1 billion in October 2024 to US$ 6.2 billion by December 2025, providing around four months of import coverage.

Public debt fell to a 10-year low of 34.9 per cent of GDP by September 2025, supported by strong nominal GDP growth and a stable exchange rate. Real GDP is forecast to grow by 5.5 per cent in 2026 and 5.0 per cent in 2027.

Implementation of flagship investment projects in real estate, transport and renewables could foster even higher growth, but continued tensions with key economic partners may adversely affect the outlook”, - reads the report.