The Asian Development Bank (ADB) has raised its forecast for Georgia’s economic growth in 2026 to 6.3%, up from 5.5% in its July outlook. The bank kept its 2027 forecast unchanged at 5.2%, citing stronger-than-expected services, consumption and exports.
ADB also raised its 2026 inflation forecast for Georgia to 5.2% from 4.9%, while keeping the 2027 forecast at 3.3%. The bank said inflationary pressures increased in the first half of the year, mainly due to higher energy and food prices.
According to the report, transport inflation accelerated to 7.7% from -2.2% a year earlier, while food prices increased by 8%, compared with 6.1% in the same period of 2025. The National Bank of Georgia responded by raising its monetary policy rate to 8.25%.
ADB said Georgia’s external position remained strong despite weaker tourism. The current account deficit narrowed to 3.8% of GDP, supported by higher goods exports, while tourism revenues fell 2% in the first half of 2026. Strong foreign currency inflows supported the lari and helped increase international reserves to more than 118% of the IMF’s reserve adequacy metric.
