Global
Georgia Posts 7.5% GDP Growth in 2025, Business Activity Stays Robust in January 2026
March 9, 2026
4
Min
Georgia sustained its impressive economic run in 2025 with real GDP growth of 7.5% for the full year, following an even stronger 9.4% expansion in 2024, according to data from the National Statistics Office of Georgia. Business activity indicators for early 2026 point to continued momentum: VAT payer turnover reached 12.9 billion Georgian lari in January 2026, a 5.9% year-on-year increase.
The number of newly registered enterprises in Georgia stood at 5,423 in January 2026, a marginal decline of 0.3% compared to January 2025, but the aggregate transaction volumes suggest that existing businesses are expanding activity. Growth was particularly strong in 2025 across manufacturing, information and communication, transportation, and accommodation and food services sectors, reflecting the continued diversification of Georgia's economic base.
Foreign direct investment data reinforces Georgia's regional dominance as an investment destination. According to UN data, Georgia attracted $1.334 billion in FDI in 2024, compared to $231 million for Azerbaijan and $139 million for Armenia. OC Media has documented the sustained appeal of Tbilisi as a regional business hub for Western and Gulf investors even amid political turbulence.
Georgia's strong macroeconomic performance has occurred against a backdrop of political turbulence following disputed parliamentary elections in late 2024. The ruling Georgian Dream party's decision to suspend EU accession negotiations triggered waves of civil society protests. However, infrastructure and energy projects continue to attract capital flows regardless of the domestic political climate.
The European Bank for Reconstruction and Development has forecast sustainable economic growth for Georgia continuing through 2026 and 2027, citing the country's strong fundamentals and positioning as the South Caucasus' primary logistics and financial services hub. Eurasianet tracks ongoing economic and political developments shaping Georgia's investment outlook.
