Georgia's 7.8% Growth Is Services-Led as Exports Jump 22% in Eight Months

Georgia's real GDP grew 7.8% in the first half of 2026, down from 8.6% a year earlier, with information and communication technology supplying almost 29% of that growth, according to an analysis by Georgia Today. Nominal GDP grew about 11%.

Services accounted for around 96% of real growth. Mining and manufacturing delivered 30% of total output growth but only 10% of nominal GDP growth and under 6% of real GDP growth. Education, which contributed 1.8 percentage points a year ago, now has virtually no impact, and the contribution from real estate fell by more than half. Trade and transport together added about 1.2 percentage points more than before, while agriculture and construction made negative contributions.

Trade data show a different driver. Exports rose 22.1% year on year in January–August and imports rose 8.0%, narrowing the trade deficit to 26.4% of GDP. Oil products accounted for 64% of export growth, a reminder that part of the export boom reflects re-exports rather than domestic production.

Two risks emerge from the same data. Fast money transfers declined 8.2% year on year in August, and Russian remittances dropped 88% month on month after EU sanctions on the Zolotaya Korona payment system. Georgia's tourism income also felt regional tensions: first-quarter revenue was $829.8 million, up only 0.5%, though EU and UK visitor spending rose 36.4%, according to economy.ge.

The ADB now projects 6.3% growth for Georgia in 2026, up from 5.5%, while the National Bank of Georgia has kept its own forecast at 6.5%. Growth is therefore running above official projections, but its composition is narrow. A handful of services sectors and re-exports carry most of the expansion.

For investors and operators, the practical read is that ICT, transport and finance remain the growth core, while real-estate and construction-linked businesses face a weaker backdrop. Remittance and sanctions-related payment disruptions will be the data to watch over the coming months.

The slowdown from 8.6% to 7.8% year on year should be read in context: it is still among the fastest rates in the region, and the nominal growth of about 11% means businesses are seeing higher revenues in lari terms. But the narrowing of growth to ICT, transport and finance means that sector-specific shocks, such as payment-system sanctions or changes in regional travel, can move the aggregate more than they would in a diversified economy.

Further Reading

• Georgia's Anaklia Landlord Model and Funding Cut
• Georgia's $500M Eurobond Rollover and Macro Credibility