Georgia Leads Among 22 Countries in Europe and Central Asia in Economic Growth

Georgia has been recognized as a leader in economic growth among 22 countries in Europe and Central Asia, with forecasts predicting it will maintain this position for the next two years. This announcement comes from Deputy Minister of Economy Vakhtang Tsintsadze, who cited the January report by the World Bank Group, according to Primetime.ge. The report reveals that Georgia’s average GDP growth rate for 2025-2026 is expected to surpass that of other EU candidate countries by 1.5 times and the Eurozone’s growth by five times.

“Our goal is to align the economic parameters of our country with those of developed nations, enabling us to raise income levels, create new jobs, and make Georgia more attractive for international investments,” Tsintsadze emphasized.

World Bank experts predict that global economic growth will remain at 2.7% in 2025-2026. This low growth rate is insufficient for sustainable development, compounded by heightened political uncertainty, unfavorable trade policy shifts, geopolitical tensions, persistent inflation, and climate-related disasters. Emerging markets and developing economies are expected to experience slower per capita income growth compared to developed economies, limiting upward mobility for low-income nations without significant policy adjustments.

To counter these challenges, nations must implement measures to create a favorable external environment, enhance macroeconomic stability, mitigate structural constraints, address climate change impacts, and promote long-term growth.

While economic growth in the South Caucasus is forecasted to decelerate to 3.9% in 2025 and 3.5% in 2026, Georgia’s GDP projections remain strong:
- 2024: 9% (revised upward from 7.5%)
- 2025: 6%
- 2026: 5%

Minister Tsintsadze attributes this resilience to government programs supporting small and medium-sized enterprises, competitive development initiatives, and major infrastructure projects. These efforts aim to boost productivity and foster an attractive business environment.

“Thanks to sound and consistent macroeconomic policies, we expect to sustain high economic growth in the coming years,” Tsintsadze added.

Georgia's significant achievements in 2024 include:
- GDP growth: 9.4% from January to November, as reported by the National Statistics Office.
- Trade turnover: An 8% year-over-year increase to $23.42 billion, with exports rising by 7.8% to $6.56 billion and imports by 8.1% to $16.86 billion.
- Tourism growth: Over 7.3 million international arrivals, a 4.2% increase compared to 2023. This growth was driven by expanded visitor numbers from China and Israel.

The Georgian Airports Union reported a record-breaking 7.4 million passengers in 2024, a 24% increase from 2023. Flight frequencies also rose by 25% to 31,937. The year saw partnerships with 10 new airlines and the introduction of 13 new routes, including connections to London, Geneva, Milan, Paris, and Zurich. Negotiations with additional partners are ongoing.

The International Monetary Fund previously ranked Georgia sixth globally for economic growth in 2024 and anticipates a 6% increase in GDP in 2025. The World Bank echoed this optimism, projecting Georgia as a regional leader in Europe and Central Asia, with a sustained average growth rate of 6.7% between 2024 and 2026.

Prime Minister Irakli Kobakhidze highlighted Georgia's economic success as a benchmark for the region and Europe. He expressed confidence in replicating these achievements in 2025, citing the country's consistent outperformance of international forecasts.

Georgia’s impressive economic growth trajectory underscores its resilience and adaptability amid global challenges. With strategic investments in infrastructure, government-led initiatives to foster entrepreneurship, and strong international partnerships, the country is well-positioned to sustain its leadership in the region. As global economic conditions remain uncertain, Georgia’s commitment to robust macroeconomic policies and strategic planning will be crucial in maintaining its upward momentum.