According to the World Bank’s new report, Global Economic Prospects 2026, Georgia’s economy, along with other countries in the Caucasus and Central Asia, continues to show solid growth. However, due to regional and global factors, the growth rate is expected to slow slightly compared to 2025.
In 2025, Georgia’s economy grew by 7%, while in 2026, the World Bank projects growth of 5.5%. This forecast is 0.5 percentage points higher than the government’s projection, as the 2026 budget is based on 5% growth.
The World Bank’s 2026 growth forecasts for the region are as follows:
- Georgia: 5.5%
- Armenia: 4.9%
- Azerbaijan: 1.8%
- Turkey: 3.7%
- Ukraine: 2%
- Russia: 0.8%
- Kazakhstan: 4.5%
The report notes that the average growth in the South Caucasus in 2026 is expected to be 3.3%. In Azerbaijan, economic activity is constrained by low growth in hydrocarbon production, falling oil prices, and strict fiscal policies.
For Armenia and Georgia, the World Bank expects economic activity to normalize after high growth in previous years. The report also highlights that the preliminary peace agreement between Armenia and Azerbaijan in August 2025 is likely to strengthen stability and promote deeper regional integration.
