Global
Georgia GDP Grows 7.5% in Full-Year 2025 Ahead of IMF Article IV Review
March 17, 2026
4
Min
Georgia's economy delivered 7.5% real GDP growth in full-year 2025, according to GeoStat data, consolidating the country's position as one of the fastest-growing economies in the region and confirming the momentum that the IMF projected in its December 2025 mission statement. The IMF's full Article IV consultation — a comprehensive review of Georgia's economic health and policy framework — is scheduled for March 2026, giving investors a timely opportunity to assess the outlook through a multilateral lens.
Growth was led by the information and communication technology sector, transport, and education, with manufacturing and accommodation and food services also contributing positively. The IMF's mission, led by Alejandro Hajdenberg, projected 7.3% GDP growth for 2025 — the final outturn of 7.5% represents a modest beat. The IMF noted that economic activity had been led by IT, transport, and education — sectors that expanded rapidly post-pandemic and have been further boosted by the large-scale migration of Russian and Ukrainian professionals since 2022.
The near-term financial calendar contains one notable event: a $500 million Eurobond maturing in April 2026. The IMF has indicated the rollover is expected to proceed smoothly under current market conditions, and Georgia's track record of sovereign bond management supports this assessment. The 2026 budget targets a fiscal deficit of 2.5% of GDP, with a planned recovery in public investment and increased social spending. The IMF also flagged a UAE investor's announced $6.5 billion real estate project as a potential upside risk to growth if implemented as planned.
Medium-term projections are more measured. The IMF forecasts GDP growth to converge gradually toward a potential rate of 5% over the medium term. A key uncertainty centres on how the Ukraine war resolves — a Russia-Ukraine settlement could both reverse some of the financial inflows and migration gains that have boosted Georgia since 2022, but could also create more stable conditions for longer-horizon investment. Georgia's banking sector, led by TBC Bank and Bank of Georgia, continues to generate strong returns; TBC Bank's five-year total return has exceeded 244% on the London Stock Exchange. The EBRD has separately forecast sustainable economic growth for Georgia in 2026-2027. The ADB noted that Georgia has received nearly $6 billion in loans, grants, and technical assistance since joining the bank in 2007.
For investors, Georgia's combination of high growth, a competitive business environment, a dollarised but relatively stable currency, and strategic East-West positioning continues to make it one of the most accessible emerging market plays in the broader Eurasian region. The March 2026 IMF Article IV will be a key data point for anyone reassessing their Georgian allocation.
