Georgia is on course for another year of strong growth. In its latest regional update, published in early October, the World Bank raised its 2026 forecast for the Georgian economy to 7%, two percentage points above its June projection. The European Bank for Reconstruction and Development (EBRD) moved in the same direction, lifting its forecast to 6.5% for 2026 and 5.5% for 2027, both half a point higher than in June.
What the data says
The upgrades follow a strong first half. Real GDP grew 7.8% in January–June, with the information and communication sector contributing almost 29% of that growth, according to TBC Capital. Momentum has held up since: Geostat’s rapid estimate put September growth at 6%, and growth over the first nine months of the year at 7.4%.
The World Bank’s numbers also show how far Georgia is ahead of its region. Its 2026 forecasts stand at 5.6% for Armenia, 4.6% for Kazakhstan, 2.8% for Türkiye and 1.2% for Azerbaijan.
The risks
The EBRD lists two main downside risks: tensions in relations with the European Union, and the conflict in the Middle East, which can weigh on tourism and push up energy costs. Both are worth watching closely in the months ahead.
Why it matters for leaders
Fast growth supports demand, lending and hiring, but it also feeds inflation, which remains above the National Bank’s 3% target. For business owners, the question for 2027 is less whether the economy grows than how much of that growth comes from durable sectors such as ICT, and how much from one-off inflows.
Sources
- Georgia Today: World Bank raises Georgia’s 2026 economic growth forecast to 7%
- Investor.ge: Investment News, October 2026
- Civil Georgia: Georgia’s GDP Up by 6% in September 2026
- Interfax: Georgia’s GDP grows 7.4% in 9M
Photo: Aleksandr Artiushenko / Unsplash