Economic Monitor Georgia
The Georgian economy grew by an impressive 9.4% in 2024, a figure significantly influenced by consumption. A certain normalisation is expected for the current year; inflation rate having remained below the central bank’s target in 2024.
WA 21 | February 2025
Labour Market and Migration
Overview
- 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
Special issues
- Electricity sector: Ambitious plans for expansion, but implementation challenges
- Electricity market liberalisation: Voluntary market opening, but very limited trading activity
