Investment bank Galt&Taggart has upgraded its forecast for Georgia’s economic growth in 2026 to 7.5%, from the previous estimate of 7%, citing stronger-than-expected economic activity in the first half of the year.
According to the bank’s economic review, Georgia’s real GDP growth accelerated to 8.6% year-on-year in June 2026, following 6.4% growth in May. Overall, the economy expanded by 7.9% in the first half of 2026. The June growth was mainly driven by manufacturing, transport, construction, information and communication, and financial activities, while declines were recorded in energy and mining.
Galt&Taggart also revised its 2026 inflation forecast upward to 5.1%, from the previous estimate of 4.8%. The bank noted that the rise in global oil prices following the closure of the Strait of Hormuz is expected to slow the anticipated decline in energy prices in the coming months.
The National Bank of Georgia has also increased its average inflation forecast for 2026, from 4.9% to 5.2%, citing geopolitical tensions in the Middle East and increased volatility in global energy prices. The central bank warned that prolonged conflicts could create additional inflationary pressures through higher energy costs.
