Georgia’s economy grows by 9.5 per cent in 2024 but downside risks remain elevated, EBRD says
Georgia’s economy is estimated to have grown by 9.5 per cent in 2024, surpassing expectations and accelerating from 7.8 per cent in 2023, says a flagship report by the European Bank for Reconstruction and Development (EBRD), published on 27 February.
ICT, trade, education, public administration, and construction drove the expansion, while the electricity, gas, steam, and air conditioning supply sector contracted. The tourism sector reached record highs in 2024, attracting 7.4 million international visitors. Despite fading war-related financial inflows and Russian migration, domestic consumption remained strong, fuelled by credit growth and wage increases.
Meanwhile, inflation remained low in 2024, averaging 1.1 per cent, down from 2.5 per cent in 2023 and well below the National Bank of Georgia’s (NBG) target of 3 per cent.
Real GDP growth is projected to moderate to 6 per cent in 2025 and 5 per cent in 2026, close to the potential growth rate, as political uncertainty, weaker external balances, and slowing credit expansion weighs on economic activity.
Lower foreign direct investment and weaker tourism revenues, the result of recent political unrest and widespread protests, may further constrain private-sector growth, while public infrastructure projects and government-backed initiatives, particularly in the transport, energy, and ICT sectors, will help to cushion the slowdown. Downside risks remain elevated.
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