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Oil Product Production Boosted Economic Growth – Gogita Todradze

გოგიტა თოდრაძე
Natiko Taktakishvili
31.07.26 15:00
72

Georgia's economy expanded by 8.6% year-on-year in June 2026, while average real GDP growth for the first six months of the year reached 7.9%, according to Geostat's preliminary estimates.

Explaining the latest figures, Geostat Executive Director Gogita Todradze said private sector turnover reached GEL 16.7 billion in June, up 14% from a year earlier. The strongest contributions to growth came from manufacturing, transport and storage, construction, information and communication, and financial and insurance activities, while declines were recorded in the energy and mining sectors.

According to Todradze, manufacturing growth was primarily driven by increased production of petroleum products, including naphtha, gasoil and fuel oil. Exports of these products rose around 12-fold year-on-year, mainly to China, African countries and Turkey. Transport and storage expanded on the back of stronger passenger and cargo air transport, as well as higher demand for freight handling and warehousing amid improving foreign trade.

Construction growth was supported by increased residential and non-residential building activity and higher volumes of design work. The information and communication sector benefited from expanding telecommunications services, software development and IT-related activities, while higher interest income boosted growth in the financial sector. Meanwhile, mining contracted due to lower metal ore extraction, and electricity generation declined as hydropower output fell by around 16% compared to June 2025.

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