According to Galt & Taggart, ongoing conflicts in Iran make tourism the most vulnerable sector in the short term, although the overall impact on Georgia’s economy is expected to be minimal. The assessment is part of the investment bank’s review of how developments in the Middle East may affect Georgia.
On February 28, U.S. and Israeli military action in Iran increased volatility in global energy markets and temporarily disrupted air and maritime transport across the region. Galt & Taggart’s analysis considers foreign currency inflows from tourism, remittances, exports, and foreign direct investment (FDI). Their baseline scenario suggests these short-term disruptions will not significantly affect Georgia’s macroeconomic performance.
Direct economic links between Georgia and Iran are limited. Last year, Iran accounted for only 0.9% of total currency inflows, with 2.6% from tourism, 0.5% from exports, and negligible remittances or FDI. Israel, by contrast, is a more important partner, particularly for tourism and remittances, contributing 12.5% of tourist income and 8% of remittances, while Gulf countries’ contributions remain small but diversified.
Overall, combined imports from Iran, Israel, and Gulf countries represented roughly 4% of total imports in 2025, mostly phones, construction materials, and other goods. These can be substituted from other suppliers, such as Turkey and China, indicating that short-term supply disruptions are unlikely to significantly affect Georgia’s economic activity.
