IMF: prudent macroeconomic management, macroprudential policies have supported further de-dollarisation of Georgia’s economy

The Executive Board of the International Monetary Fund has concluded its Article IV Consultation review of Georgia’s economy.

According to the IMF, Georgia’s macroeconomic position and economic growth remain strong despite global challenges, supported by sound macroeconomic management and economic policies.

The Fund noted that key policy priorities include keeping inflation at its target level, strengthening international reserves, and continuing structural reforms.

The report highlighted that Georgia’s real economic growth reached 7.5% in 2025, significantly exceeding its pre-pandemic trend for the fifth consecutive year.

The Fund assessed that the country’s macroeconomic policies were broadly aligned with its recommendations.

The IMF forecasts Georgia’s economy to grow by 6.5% in 2026, while inflation is expected to gradually decline.

“The increase in the monetary policy rate in May was appropriate. The National Bank should remain prepared to tighten policy further if inflationary pressures prove more persistent. Inflation is expected to peak in mid-2026, primarily due to rising energy prices, before gradually returning to the 3% target”, the report said.

According to the IMF, Georgia’s external position in 2025 was stronger than the level implied by medium-term fundamentals and desirable policies.

“The external sector strengthened amid a narrowing current account deficit and rising international reserves. In 2025, the current account deficit fell to a historic low of 2.6% of GDP, mainly driven by strong growth in services exports, particularly ICT and tourism, as well as subdued goods import growth amid lower oil prices. By the end of April 2026, international reserves stood at $6.4 billion, equivalent to 102% of the IMF’s reserve adequacy (ARA) metric. This outcome reflects more than $3 billion in net foreign exchange purchases by the National Bank over recent years, supported by de-dollarisation, financial inflows, and valuation gains resulting from higher gold prices”, the Fund noted.

The report further emphasised the strength of Georgia’s banking sector, describing banks as well-capitalised, liquid, and profitable, while the share of non-performing loans remains low.

“Prudent macroeconomic management and macroprudential policies have supported further de-dollarisation of the economy. Deposit dollarisation has also declined, reflecting improved market confidence and the weakening of the US dollar”, the IMF concluded.