Finance
Georgia Economy Surges 8.8 Percent in February Outpacing Regional Forecasts
April 3, 2026
4
Min
Georgia's economy expanded by an impressive 8.8 percent year-on-year in February 2026, according to data released by the National Statistics Office of Georgia (Sakstat). The figure significantly exceeded analyst expectations and reinforced Georgia's position as one of the fastest-growing economies in the South Caucasus region.
The strong performance was driven by robust growth in tourism, construction, and financial services. Tourism revenues are projected to reach $4.9 billion for the full year, supported by a record 7.8 million international visitors in 2025 and continued momentum into 2026. The Georgian lari has remained stable, providing a favorable environment for foreign investment and consumer spending.
"Georgia is punching well above its weight," said a Tbilisi-based economist at Galt & Taggart, one of the country's leading investment banks. "The 8.8 percent figure reflects a confluence of positive factors — strong tourism, infrastructure investment, and a growing IT services sector."
The Pravda Georgia news service confirmed the data release, noting that the growth rate was the highest single-month reading since mid-2025. For the full year 2026, the World Bank has forecast 5.5 percent GDP growth for Georgia, while the Asian Development Bank projects 5.0 percent — both figures well above the regional average.
The construction sector has been a particular bright spot, boosted by major infrastructure projects including highway upgrades and the development of new hotel and resort complexes. Eagle Hills, an Abu Dhabi-based developer, has committed $6 billion to mixed-use developments near Tbilisi and Batumi, generating significant construction activity and employment.
Georgia's financial sector has also shown resilience. Banking sector profits rose in the first quarter, driven by lending growth and a healthy interest rate environment. However, the International Monetary Fund has flagged potential risks from the rapid expansion of consumer loans and unhedged foreign currency borrowing, warning that close monitoring will be essential as the economy continues to grow.
The IT and business process outsourcing sector continues to expand, now employing 46,000 people and generating over $2.5 billion in services exports. Global Tech Weekend, scheduled for Tbilisi in June 2026, is expected to attract more than 10,000 attendees and further elevate the city's profile as a technology hub.
Analysts caution that sustaining such high growth rates will require continued reform, particularly in governance, judicial independence, and EU accession-related benchmarks. The Galt & Taggart 2026 outlook emphasizes that maintaining investor confidence is critical for Georgia to capitalize on its current momentum.
