IMF forecasts Georgia's economy to grow 7.2% this year

The International Monetary Fund (IMF) forecasts that Georgia's economy will grow by 7.2% in 2026 and 5.7% in 2027.

According to Report"s Georgian bureau, citing the country's Ministry of Finance, the projections were discussed during a concluding meeting between IMF mission chief Alejandro Hajdenberg, Finance Minister Lasha Khutsishvili, and National Bank Governor Natia Turnava.

The discussions focused on this year"s economic growth trends, medium-term macroeconomic forecasts, as well as fiscal and monetary policy issues.

In its concluding statement, the IMF noted that despite growing geopolitical uncertainty and high energy prices, Georgia's economy continues to demonstrate resilience. The Fund also highlighted the strengthening of the country"s fiscal and external buffers.

According to the IMF forecast, Georgia's economic growth is expected to gradually converge toward its medium-term potential rate of around 5%.

The Fund also positively assessed the strengthening of Georgia"s external position, the reduction of the current account deficit, and the increase in international reserves. The statement noted that the country continues to pursue a prudent fiscal policy.

Against the backdrop of rising revenues, the budget deficit is projected to amount to 1.5% of GDP in 2026, while public debt is expected to decline to 33% of GDP.

The draft budget for 2027 envisages a budget deficit equivalent to 2.5% of GDP, with funds planned to be directed toward increased social spending, public-sector wages, and capital investment.

The next IMF mission to Georgia under the Article IV Consultations framework is scheduled for April 2027.