IMF raises Georgia's 2026 economic growth forecast to 6.5%

The Executive Board of the International Monetary Fund has concluded its Article IV consultation with Georgia and upgraded the country's economic growth forecast for 2026 to 6.5%.

In a report titled Georgia: 2026 Article IV Consultation, the IMF said the Georgian economy had remained resilient despite heightened global uncertainty, including the ongoing conflict in the Middle East.

According to the report, Georgia's real GDP expanded by 7.5% in 2025 and remained strong in the early months of 2026. Inflation, driven by higher energy prices, rose above the central bank's target and reached 5.9% in April 2026.

The IMF noted that Georgia's fiscal and external buffers have strengthened. International reserves have reached the Fund's adequacy threshold, while public debt has fallen below 35% of GDP.

Assuming the conflict in the Middle East ends in the near future, the IMF expects economic growth to moderate to 6.5% in 2026 before gradually converging towards its medium-term potential rate of 5% by 2028.

Inflation is projected to return to its target level by mid-2027, while public debt is expected to remain close to current levels, provided prudent monetary and fiscal policies continue.

The IMF said that, amid elevated uncertainty and recurring external shocks, policy priorities should focus on bringing inflation back to target, further strengthening reserve buffers and advancing structural reforms in order to sustain strong economic growth and create more jobs.