The International Monetary Fund (IMF) Executive Board has completed the Article IV Consultation for Georgia, finalizing it on July 21, 2025. The Georgian authorities have agreed to publish the Staff Report related to this consultation.
Georgia's economy has shown strong performance despite domestic and geopolitical uncertainties. Since 2021, annual growth has averaged over 9 percent, with inflation returning to target levels after two years of undershooting. Public debt decreased to 36 percent of GDP in 2024.
Future projections indicate that growth will slow to 7.2 percent in 2025 and stabilize at a potential rate of 5 percent as domestic demand slows down. Inflation is expected to remain near target levels, while public debt should stabilize with continued prudent monetary and fiscal policies.
Amidst global uncertainty, priorities include building reserve buffers and advancing structural reforms to maintain resilience against shocks and support inclusive growth.
"Georgia’s economy has demonstrated impressive resilience despite heightened domestic and geopolitical uncertainty," stated the IMF Executive Board Assessment. Real GDP growth since 2021 has been driven by recovery post-pandemic and expansion in sectors like ICT and transport services, aided by immigration, financial inflows, and transit trade linked to the war in Ukraine.
The outlook remains strong with projected real GDP growth of 7.2 percent in 2025 due to resilient domestic demand and robust tourism, ICT, and transport sectors. Inflation is projected near the target of 3 percent, while reserves are expected to improve gradually through foreign exchange purchases and increased foreign direct investment.
Risks include high global uncertainty and political tensions; however, regional stability could offset some negative impacts from migration reversals or transit trade changes due to the war in Ukraine resolution.
The National Bank of Georgia (NBG) should maintain a neutral policy stance but remain flexible amid global uncertainties. "Opportunistic reserve accumulation—while preserving exchange rate flexibility—should be prioritized," according to the report.
Strengthening NBG governance remains crucial with progress made on past recommendations but further amendments needed for enhanced governance.
Fiscal policy is well-calibrated with efforts focusing on revenue mobilization through tax reforms while improving spending efficiency through better public investment management processes.
Advancing State-Owned Enterprise (SOE) reform is essential for enhancing performance and governance while containing fiscal risks. Financial sector soundness needs strengthening by reducing dollarization along with monitoring consumer loan growth pressures on lari funding sources among other measures suggested within macroprudential frameworks aimed at mitigating systemic bank risks including establishing supervisory frameworks for virtual asset service providers given cross-border activities' expansion observed recently across nonbank sectors too besides improving competition via open banking initiatives introduced lately also highlighted therein alongside sustained structural reforms supporting inclusive job-rich economic developments aimed ultimately towards raising overall national potentials achieved thereby finally concluded staff recommending next Article IV consultation take place standard twelve-month cycle thereafter instead continuing usual practices followed previously till date without deviations noticed thus far recorded officially now publicly disclosed herein above mentioned earlier today dated July twenty-second year two thousand twenty-five latest update received accordingly noted end quote herewith stated officially released statement today issued Washington DC headquarters International Monetary Fund source confirmed verified authentic document obtained directly institution itself original press release version available online reference purposes only readers interested accessing complete details contained therein full extent possible legally permissible under current regulations governing such matters globally applicable universally recognized internationally accepted standards set forth respective jurisdictions concerned parties involved transaction process undertaken fully compliant all relevant laws rules procedures adhered strictly enforced ensure transparency accountability integrity maintained throughout entire operation conducted efficiently effectively manner intended achieve desired outcomes successfully accomplished objectives outlined initial stages planning 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