According to the United Nations’ latest report, World Economic Situation and Prospects 2026 (WESP 2026), Georgia’s economy is expected to maintain strong momentum among Caucasus and Central Asian countries, although regional and global factors may slightly slow growth.
In 2025, Georgia’s economy grew by 7.5%, while 5.4% growth is projected for 2026. This forecast is 0.4 percentage points higher than the Georgian government’s projection, which assumes 5% growth in the 2026 budget.
The report notes that for small economies like Georgia, the benefits of serving as an intermediary in trade with Russia are gradually diminishing. However, this slowdown is offset by strong domestic demand, supported by infrastructure investment and significant remittance inflows. Georgia remains among the countries where remittances account for a significant share of GDP, approximately 13–15% in 2024.
UN economic growth projections for 2026 in the region:
- Georgia – 5.4%
- Armenia – 4.8%
- Azerbaijan – 2.7%
- Turkey – 3.9%
- Ukraine – 2.3%
- Russia – 1%
- Kazakhstan – 4.6%
Despite positive trends, the report highlights several structural challenges common to regional countries, including Georgia:
- Inflationary pressures: Accelerated inflation was observed in the region in 2025, requiring varied monetary policy responses from central banks.
- Infrastructure and technology gaps: Insufficient digital infrastructure and low agricultural productivity remain long-term constraints.
Geopolitical risks: The ongoing war in Ukraine and sanctions on Russia continue to affect regional macroeconomic stability and trade connections.
UN experts emphasize that Georgia’s future economic development will largely depend on its resilience to external shocks and the effectiveness of domestic structural reforms.
