Georgia Economic Outlook
A growing regional hub:
Georgia’s economy is characterized by a liberal business environment, low taxes, and strategic positioning as a transit corridor between Europe and Asia. The country has implemented significant economic reforms since the early 2000s, making it one of the most business-friendly economies in the region. Its trade and investment policies are geared toward integration with Western markets, particularly through its Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union.
Diversified economic sectors:Georgia's economy is driven by services, tourism, agriculture, and energy. The tourism industry has become a major contributor to GDP, with millions of visitors annually, particularly from Russia, Turkey, and the EU. Agriculture remains an important sector, although productivity is low. The government has been actively promoting renewable energy projects, leveraging the country’s hydroelectric potential.
Trade and external dependencies:Georgia’s open economy benefits from its location along the Middle Corridor trade route, which connects China and Europe via the Caspian Sea. However, the country remains reliant on imports for many goods and energy supplies. Russia is a key trade partner, particularly for agricultural exports, but geopolitical tensions and periodic trade restrictions pose risks to economic stability.
Georgia’s economic outlook:Georgi’s economic growth should remain upbeat, driven by foreign investment, tourism, and infrastructure development. However, challenges such as high inflation, political instability, and regional security risks remain. Continued integration with the EU and reforms to boost domestic production will be crucial for long-term economic resilience.
Georgia's Macroeconomic Analysis:
Nominal GDP of USD 33.8 billion in 2024.
Nominal GDP of USD 30.8 billion in 2023.
GDP per capita of USD 8,250 compared to the global average of USD 10,589.
GDP per capita of USD 9,038 compared to the global average of USD 10,589.
Average real GDP growth of 5.1% over the last decade.
Average real GDP growth of 5.5% over the last decade.
Sector Analysis
In 2022, services accounted for 61.7% of overall GDP, manufacturing 8.3%, other industrial activity 24.0%, and agriculture 6.0%. Looking at GDP by expenditure, private consumption accounted for 68.9% of GDP in 2023, government consumption 12.7%, fixed investment 25.9%, and net exports -7.5%.International trade
In 2023, manufactured products made up 29.6% of total merchandise exports, mineral fuels 4.2%, food 39.2%, ores and metals 21.9% and agricultural raw materials 0.8%, with other categories accounting for 4.3% of the total. In the same period, manufactured products made up 72.1% of total merchandise imports, mineral fuels 11.2%, food 12.4%, ores and metals 2.8% and agricultural raw materials 0.8%, with other goods accounting for 0.7% of the total. Total exports were worth USD 8.60 billion in 2024, while total imports were USD 15.10 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 5.1% in the decade to 2023. To read more about GDP growth in Georgia, go to our dedicated page.
Fiscal policy
Georgia's fiscal deficit averaged 2.6% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 20.4% in the decade to 2023. For more information on Georgia's unemployment click here.
Inflation
Inflation averaged 4.8% in the decade to 2024. Go to our Georgia inflation page for extra insight.
Monetary Policy
Georgia's monetary policy rate ended 2024 at 8.00%, up from 4.00% a decade earlier. See our Georgia monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the lari weakened by 32.1% vs the U.S. dollar. For more info on the lari, click here.
Economic situation in Georgia
The economy ended the year on a weaker footing, with annual GDP growth slowing to 8.3% in Q4 (Q3: +11.0% yoy): Mounting democratic backsliding drove nationwide protests, road blockages and mass arrests, denting momentum in private spending and exports. Still, economic growth remained comfortably above the 5.3% pre-pandemic 10-year average, bolstered by a nearly two-thirds increase in public spending and a rebound in fixed investment. As a result, the economy expanded 9.4% overall in 2024 (2023: +7.8%). Shifting to Q1 2025, our panel expects GDP growth to have cooled from Q4 levels. Inflation accelerated markedly and goods exports lost traction in January–February, likely capping private spending and external sector growth, respectively. That said, economic activity improved in the same two months from Q4 levels as protests broadly subsided, giving some respite to economic activity.Georgia Economic Forecasts
Projections out to 2034.44 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 12 expert analysts.
Want to get insight on the economic outlook for Georgia in the coming years? FocusEconomics collects projections out to 2034 on 44 economic indicators for Georgia from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Georgia economy. To download a sample report on the Georgia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.