Georgia’s First Deputy Finance Minister Giorgi Kakauridze said income tax growth is one of the key indicators of how economic growth is reflected in citizens’ incomes. In the first six months of 2026, income tax revenues increased by GEL 919 million year-on-year, which he linked to higher employment and wages.
Kakauridze said the increase in income tax indicates that total wages paid in the economy rose by around GEL 4.5 billion. He explained that nominal economic growth includes both real growth and the effect of prices, while real GDP growth reached 7.9% in the first half of the year. With a 4.1% GDP deflator, nominal growth was around 14%.
Responding to concerns about rising prices, Kakauridze said inflation currently stands at 5.6%, above the National Bank’s 3% target. He expects relatively high inflation to continue this year, reaching around 5.2% by year-end.
Kakauridze said the National Bank is responsible for managing inflation and has maintained a relatively tight monetary policy. He expects inflation to gradually decline in the second half of the year as the base effect fades, moving closer to the target rate next year.
