Economic Monitor Georgia

WA 21 | February 2025

2024: real GDP grew by 9.5%, fourth year of very high growth as consumption remained strong.
Growth was broad-based across services sectors and construction
2025: real growth estimated at 5.0% on the back of normalisation of domestic consumption and external demand, return towards long-term trend
Lari experienced depreciation pressure in May/June and in October 2024; National Bank
intervened with sizeable FX sales (net USD 435 m), exchange rate now around 2.80 GEL/USD
Inflation remained below target (3%) in 2024, but monetary policy remains cautious
Money transfers from Russia normalised, share in total (16%) now below pre-relocation level
Growth of re-exports (esp. cars) is slowing, but remains key driver for goods imports and exports
Services exports slightly growing, as tourism growth moderates
Budget deficit (2.5% of GDP) meeting fiscal rule for third consecutive year, expected to remain at similar level in 2025/2026; public debt stabilising around 35% of GDP

Electricity sector. Ambitious plans for expansion, but implementation challenges
Electricity market liberalisation. Voluntary market opening, but very limited trading activity