Georgia’s GDP growth rate reached 8.8% in February, as a periodic review by Moody’s predicted economic growth of 6% in 2026.
In its preliminary estimates published on Tuesday, Georgia’s National Statistics Bureau attributed the growth to the IT and communication, transport and storage, financial and insurance activities, manufacturing, and mining and quarrying sectors.
In mid-March, global credit rating firm Moody’s carried out a periodic review of Georgia’s economy, increasing its growth forecast for the year from 5.5% to 6% .
Moody’s also projected that Georgia’s foreign exchange reserves in 2027 would grow to $6.1 billion, from $5.6 billion at the beginning of 2026 and $4.7 billion in 2025.
Georgia’s National Bank Governor Natia Turnava said the figures came following consultations between Moody’s, the finance ministry, and commercial banks.
Their report also noted the government’s successful refinancing of the maturity of its Eurobond obligations in January 2026 through the issuance of $500 million in bonds with a 5.1% coupon rate.
Georgia maintains a Ba2 credit rating by Moody’s, as its GDP continues to grow despite ongoing geopolitical tensions.
Real GDP growth averaged 7.5% in 2025, significantly exceeding the median of comparable countries at 3.6%. Growth was supported by strong domestic demand, rising wages, trends in the services sector, and infrastructure spending, although unfavourable demographics and low agricultural productivity remain constraints. Growth is expected to slow to around 6% in 2026, gradually converging toward the estimated potential rate of about 5%, amidst a normalisation of domestic demand.
According to 2025 budget data, the fiscal deficit declined to 1.2% of GDP from 2.2% the previous year, driven by tax reforms. This contributed to consolidating the debt burden at 34.5% of GDP.
In the external sector, goods exports remained strong in 2025, although imports also increased. Despite a slight widening of the trade deficit, the current account deficit narrowed significantly during the first three quarters of 2025, driven by growth in remittances and services exports. The deficit declined to 2.9% of the GDP (from 5.3% in 2024) and is expected to remain close to this level over the next two years, well below the average 8% deficit recorded over the previous five years.
Moody’s also highlighted the role of the Middle Corridor in strengthening Georgia’s external sector.
According to Moody’s, Georgia’s credit profile is supported by an economic strength assessment of Baa2 (high growth, middle income per capita, relatively high unemployment). It also holds a Baa3 assessment for institutions and governance, reflecting strong macroeconomic and fiscal frameworks, and an A3 fiscal strength ranking owing to Georgia’s low debt.
The outlook could become stable if political risks decline significantly and the institutional environment improves. Reforms that support economic diversification and productivity growth could also positively affect the rating.
The report comes as the Georgian government continues to attract investors and assure existing economic activities amid political volatility, uncertainty surrounding Georgia’s EU integration, and sanctions.
The Ministry of Economy and Sustainable Development reported that its leadership discussed Georgia’s economic progress, reforms, and major public and private investment projects with representatives of large international investment banks, including a delegation from JP Morgan, on 25 March.
Helena Bedwell
