Galt & Taggart economist Lasha Kavtaradze said the company is maintaining its economic growth forecast for Georgia at 7.5% for 2026. Speaking on Business Morning, he said growth is expected to accelerate in the fourth quarter, supported by higher government capital spending.
“Economic growth has slowed somewhat — it was 6.3% in August, while growth for the first eight months stands at 7.6%, which is still quite high compared with the potential growth rate of 5.5–6%,” Kavtaradze said. He expects stronger activity in the fourth quarter as government capital expenditures increase compared with the pace seen during the first eight months.
Against this backdrop, Galt & Taggart maintains its 7.5% growth forecast for 2026 and expects growth to gradually approach its potential level, forecasting 6% growth in 2027. Kavtaradze said construction remains one of the weaker sectors, largely due to the pace of government infrastructure projects.
Kavtaradze expects the 2027 state budget to be based on a conservative 5% growth forecast. He said Galt & Taggart’s 6% forecast is also relatively conservative and is broadly in line with forecasts from international institutions, which often revise their growth projections upward later.
