Georgia's Economy Grows 7.8% in First Half as ICT Drives Expansion

Georgia's economy expanded 7.8% in real terms in the first half of 2026, according to Geostat data analysed by Georgia Today. That is a slowdown from 8.6% in the same period of 2025, but still among the fastest rates in the region.

Who is driving growth

Information and communication technology was the dominant contributor, accounting for almost 29% of real GDP growth at basic prices, more than double the contribution of any other sector. Services as a whole supplied roughly 96% of real growth. Agriculture and construction made negative contributions, and the contribution from education fell from about 1.8 percentage points to nearly zero.

Second-quarter data show the same pattern. GDP grew 6.9% year on year in Q2, with nominal GDP of GEL 28.147 billion, per Caucasus Watch. Transport and storage rose 19.8%, information and communication 16.6%, and manufacturing 7.3%, while construction fell 4.8% and agriculture 3.5%. Forecasts for 2026 range from 5.4% (UN) to 6.5% (IMF), with the EBRD at 6%.

Exports up, remittances under pressure

Merchandise exports rose 24.7% year on year in August, with oil products accounting for more than 64% of the increase. Vehicle re-exports fell 22%. Fast money transfers dropped 8.2% year on year in August, driven by an 88% month-on-month fall in remittances from Russia after EU sanctions on the Zolotaya Korona payment system.

• H1 real growth: 7.8% (8.6% in H1 2025)
• Q2 growth: 6.9%
• August exports: +24.7% year on year
• August money transfers: -8.2% year on year

Implications

Growth is narrowing. With ICT supplying close to a third of the expansion and construction shrinking, the economy is more exposed to a single sector than the headline suggests. The Q2 reading of 6.9% sits below the half-year average, consistent with deceleration, and revised Q2 figures are due by 13 November.

The remittance drop from Russia is a smaller-scale risk to household incomes, though the export surge, led heavily by oil products, may not be a durable base. Investors should watch whether services outside ICT, such as transport and trade, keep supporting growth as the sector mix shifts.

Further Reading

• Georgian Railway Signs $3.3 Million Deal to Rebuild Tbilisi Platforms
• Armenia's Investment Forum Returns September 30 to Pitch Capital Markets