IMF: Georgia’s Economy to Grow by 6.5% in 2026, Inflation Expected to Gradually Decline

Assuming that the ongoing conflict in the Middle East comes to an end soon, Georgia’s economy is projected to grow by 6.5% in 2026 and gradually converge toward its medium-term potential growth rate of 5% by 2028, according to the conclusions of the International Monetary Fund’s (IMF) Executive Board following the Article IV Consultation.

Notably, in its April forecast, the IMF had projected Georgia’s economic growth for 2026 at 5.3%.

According to the IMF, Georgia’s macroeconomic position and economic growth remain strong despite global challenges, supported by sound macroeconomic management and economic policies.

The Fund emphasizes that the key policy priorities are maintaining inflation at its target level, strengthening international reserves, and continuing structural reforms.

The report notes that Georgia’s real GDP expanded by 7.5% in 2025 and maintained strong momentum in early 2026. Inflation exceeded the target level due to rising energy prices, reaching 5.9% in April 2026. At the same time, fiscal and external buffers strengthened significantly. The current account deficit narrowed to a historic low of 2.6% of GDP, international reserves reached the IMF’s adequacy threshold, and public debt fell below 35% of GDP.

“Inflation is expected to return to its target level by mid-2027, while public debt is projected to remain close to current levels, provided prudent monetary and fiscal policies continue. Amid heightened uncertainty and recurring external shocks, key policy priorities remain bringing inflation back to target, further strengthening international reserves, and advancing structural reforms to sustain strong economic growth and create more jobs,” the IMF report states.