IMF raises Georgia’s economic growth forecast to 6.5%

The International Monetary Fund has revised upward its forecast for Georgia’s economic growth to 6.5% in its publication “Georgia: 2026 Article IV Consultation”.

The report noted that Georgia’s economy has remained highly resilient despite heightened global uncertainty, including the ongoing conflict in the Middle East.

“Real GDP growth reached 7.5% in 2025 and remained robust in early 2026. At the same time, inflation exceeded the target rate, reaching 5.9% in April 2026, largely due to higher energy prices”, the report said.

According to the IMF, Georgia’s fiscal and external positions have improved significantly. International reserves have reached the Fund’s adequacy benchmark, while public debt has fallen below 35% of GDP.

The Fund projects that, provided the conflict in the Middle East subsides in the near term, economic growth will moderate to 6.5% in 2026 before gradually returning to its medium-term potential rate of 5% by 2028.

Inflation is expected to return to its target level by mid-2027, while prudent monetary and fiscal policies are projected to keep public debt close to its current level.

“Against a backdrop of elevated uncertainty and recurring external shocks, the key policy priorities are to bring inflation back to target, further strengthen international reserves, and continue structural reforms to sustain strong economic growth and create more jobs”, the report concluded.