Georgia’s Economy in Q1 2025: Strong GDP Growth and Trade Expansion

In March 2025, Georgia’s real GDP grew by 9% year-on-year, with an overall 9.3% growth in Q1—demonstrating a sustained positive economic trajectory. The highest monthly growth was recorded in January at 11.12%, according to the National Statistics Office of Georgia.

Sectoral Drivers and VAT Turnover

The sectors contributing most to economic expansion included:
- Information and communication,
- Professional, scientific and technical services,
- Financial and insurance activities,
- Transportation and storage,
- Construction.

Business activity was further evidenced by VAT-paying entities whose total turnover reached ₾14 billion (~$5.2 billion), up 10.8% compared to March 2024. Additionally, 6,270 new companies were registered in March—a 1.6% increase year-on-year.

The only major sector to show a decline was manufacturing, likely due to seasonal fluctuations and adjustments in international trade and domestic demand.

Foreign Trade: 16.1% YoY Growth

Georgia’s external trade volume reached $5.62 billion in Q1 2025—a 16.1% increase over the same period in 2024:
- Exports: $1.4 billion (+5.7%)
- Imports: $4.22 billion (+20.1%)
- Trade deficit: $2.82 billion, or 50.1% of total trade.

Top trade partners remained:
- Turkey – $663M
- USA – $669M
- Russia – $643M
- China – $444M
- Azerbaijan – $306M

Import Structure

Major imports included vehicles, energy, pharmaceuticals, electronics, and light industry products. The U.S. became the largest import partner, with $654 million worth of goods (+67% YoY). The UK also saw an eightfold increase, reaching $292 million.

Export Highlights

Top export destinations:
- Kyrgyzstan – $298.6M
- Kazakhstan – $176.2M
- Azerbaijan – $140.3M
- Russia – $129.8M
- Armenia – $113.8M

Leading export products:
- Passenger cars ($500M+)
- Mineral and sparkling waters
- Wine and spirits
- Ferrous alloys and metal ores

The export structure reflects a mix of re-exports, agro-food growth, and metallurgy.

International Outlook

The IMF ranks Georgia among the top three global performers in per capita GDP growth for the 21st century. In 2024, Georgia saw a 10.7% increase in real per capita GDP, second only to Guyana. Total GDP growth for 2024 was 9.4%.

Forecasts for 2025:
- ADB: 6% (up from 5.5%)
- EBRD: 6% (+1.4 p.p.)
- Government expectations: 10%

Both institutions highlight infrastructure and construction as key drivers. Georgia continues to outperform regional peers in the South Caucasus and parts of Eastern Europe.