European Commission projects 7.3% economic growth for Georgia in 2025, surpassing IMF forecast

The European Commission has published its updated European Economic Forecast, noting Georgia’s economic growth expected to remain strong and exceed 7 percent in 2025 and will slow down to 5-5.5 percent in 2026-2027.

Economic growth is expected to be driven by private and public consumption. The unemployment rate will decline slightly by 2027. According to the European Commission, price pressures are expected to ease in the future.

“Gross Domestic Product (GDP) growth remained strong, although it slowed down, from 9.4 percent in 2024 to 7.7 percent in the first nine months of 2025. Private consumption continued to be the main driver of growth, but weakened against the backdrop of relatively slow wage growth, inflation and a slight decline in employment. Government consumption increased significantly, as the Government partly used the additional revenues from the growing economy”, the forecast noted.

“Investment remained strong, despite a temporary slowdown in the pace of public investment. Exports of goods increased significantly over the period, largely due to re-exports of cars. Imports grew at a slightly slower pace than exports. Remittances remained stable and amounted to just over 10 percent of GDP. On the supply side, the rapidly growing information and communication technology sector made a particularly strong contribution to real economic growth. It was followed by other services such as education, financial services and real estate. Overall, GDP growth is expected to reach 7.3% in 2025”, the document added.

According to the European Commission, economic growth is also expected to slow in 2026 and 2027, moving closer to its long-term potential of 5–5.5 percent. Growth will continue to be driven by private and public consumption, supported by rising wages and strong consumer credit.

Exports of goods will grow slowly due to weak export capacity, while the country has more potential to expand exports of services, especially in the areas of tourism, Information and Communication Technology (ICT), and transport.