Global
Georgia Logs Fourth Straight Quarter of External Surplus as Reserves Hit $7.1bn
July 28, 2026
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Georgia's external accounts have strengthened to a degree not seen in years, with the country's current account balance excluding reinvested earnings holding in surplus for a fourth consecutive quarter, according to a fresh assessment from TBC Capital. The run of surpluses, which began in the second quarter of 2025, has coincided with a climb in gross international reserves to a record $7.1 billion by June 2026, giving the central bank an unusually deep cushion and lending firm support to the lari.
The shift marks a notable turnaround for an economy long characterised by structural external deficits financed by capital inflows. In the first quarter of 2026, the headline current account deficit narrowed to 3.2% of GDP, or $298 million, an improvement of $271 million, or 48%, from the same period a year earlier. Stripped of seasonal distortions, the balance flipped to a marginal surplus of 0.1% of GDP, underscoring how far the underlying external position has moved from the chronic shortfalls of the past decade.
Two engines drove the improvement. Exports of information and communications technology services surged by $167 million year-on-year, extending a multi-year expansion of Georgia's tech and outsourcing base, while net remittance inflows rose by $190 million. Together the two flows more than offset the persistent goods trade gap, reflecting both the maturing of Georgia's digital services sector and resilient transfers from Georgians working abroad. The analysis was published by Georgia Today, citing TBC Capital research.
For investors and businesses, the reserve build-up carries tangible weight. Gross reserves rose by roughly $800 million between March and June 2026, and TBC Capital identifies that accumulation as a central factor behind the lari's appreciation over the past year. A stronger, better-supported currency lowers the cost of servicing foreign-currency debt for Georgian firms and households in a still heavily dollarised economy, while ample reserves reduce the risk premium foreign lenders and rating agencies attach to the sovereign. The improving external metrics also feed directly into the macroeconomic picture that the International Monetary Fund weighs in its regular reviews of the country.
The durability of the trend will hinge on whether the services boom and remittance flows hold up against external headwinds, including softer regional demand and any renewed volatility in trade. Should ICT exports continue their trajectory and remittances remain steady, Georgia could sustain a broadly balanced external position through 2026, a rare and welcome development for a small, open economy that has historically leaned on volatile capital inflows to plug its funding gaps. For now, the combination of record reserves and a shrinking deficit gives Tbilisi a firmer footing than it has enjoyed in some time.
