According to GeoStat, Georgia’s agricultural sector contracted in 2025, even as the overall economy grew 7.5%. The sector’s current-price GDP reached GEL 5.42 billion, marking a 5.7% decline compared to the previous year. Consequently, agriculture accounted for 5.9% of the national economy, ranking 9th among all sectors, down from 6.2% in 2024.
GeoStat defines the agriculture sector to include primary production such as livestock, grains, fruits, grapes, and other raw produce. Food processing, wine, and meat production are classified under manufacturing, not agriculture. Therefore, any statistical growth in the sector depends on increases in primary production volume and turnover.
Despite its decline, agriculture continues to receive significant state funding. In 2025, the total budget for agricultural programs reached GEL 667 million, up from GEL 625 million in 2024. The largest allocation, GEL 210 million, was directed to preferential agro-credit programs supporting farmers.
A recent Galt & Taggart study highlighted structural challenges, including small land plots and low corporatization, resulting in productivity well below regional and global averages. For instance, fruit yields in Georgia average 4.8 tons per hectare, compared to 10 tons in Russia, 11 tons in Ukraine, 11.4 tons in Armenia, and 11.7 tons in the EU. Grain yields average 2.8 tons per hectare, versus 3.4–5.2 tons in neighboring countries and the EU, while vegetable yields are 11.1 tons per hectare, far below 20.5–42.3 tons in the region. These gaps highlight potential areas for investment and modernization in Georgian agriculture.
