Georgia’s economy expanded by 7.7% in February 2025 compared to the same period last year, preliminary estimates from the National Statistics Office of Georgia (Geostat) said on Monday. The average growth rate for the first two months of the year stood at 9.4%.
The turnover of Georgia’s private sector, measured by the revenue of VAT-paying companies, reached 12.7 billion GEL in February – an annual increase of 8.7%.
At a briefing, Geostat’s Executive Director, Gogita Todradze, outlined the main contributors to economic expansion. The strongest growth was observed in the professional, scientific, and technical activities sector, which includes accounting, auditing, legal services, and architectural and engineering activities. The information and communication sector also performed well, driven by increased demand for software development, IT consultancy, and digital services, he said.
The transport and warehousing sector also saw gains, particularly in air transport, where both passenger and freight volumes increased. In the energy sector, electricity distribution rose, with thermal power plant output increasing by approximately 20%, offsetting a decline in hydroelectric power generation. Electricity imports also saw an uptick.
Meanwhile, the mining industry benefited from a rise in non-ferrous metal extraction, further supporting the overall economic performance.
Despite overall growth, several key industries faced downturns. The manufacturing sector, particularly ferrous metal production, saw a decline due to reduced output of cast iron, steel, and ferrosilicon-manganese alloys. The export of ferrosilicon-manganese dropped by approximately 67%, with Turkey and Egypt being the most affected markets.
The wine industry also struggled, with production and exports decreasing by 47% in February. The construction sector faced a downturn as well, driven by reduced civil infrastructure projects, including highways and bridges, along with a slowdown in residential construction.
