IMF Sees Strong Growth for Georgia Despite Global Risks
By Messenger Staff
Friday, June 12, 2026
The International Monetary Fund (IMF) has described Georgia's economy as resilient despite heightened global uncertainty and ongoing tensions in the Middle East, projecting economic growth of 6.5% in 2026.
In a statement released on June 10 following its latest Article IV consultation with Georgia, the IMF said the country's economy remained strong in 2025 and early 2026. Real GDP grew by 7.5% last year, while inflation rose to 5.9% in April 2026, driven largely by higher energy prices.
The Fund noted that Georgia's fiscal and external positions have improved, with international reserves reaching the IMF's adequacy threshold and public debt falling below 35% of GDP.
Assuming the conflict in the Middle East eases in the near term, the IMF expects economic growth to gradually slow from 6.5% in 2026 to its estimated long-term rate of 5% by 2028. Inflation is projected to return to the National Bank of Georgia's target by mid-2027.
The IMF said policy priorities should focus on reducing inflation, strengthening reserve buffers, and advancing reforms to support long-term growth and employment.
Executive Directors praised Georgia's macroeconomic management and the resilience of its financial sector, while recommending that monetary policy remain tight and that foreign exchange reserves continue to be accumulated when conditions permit.
They also called for reforms to strengthen the governance framework of the National Bank of Georgia and urged further efforts to improve tax administration, increase spending efficiency, and reduce fiscal risks linked to state-owned enterprises.
The IMF welcomed the stability of Georgia's banking sector but warned that authorities should remain alert to risks from rapid credit growth, foreign currency exposure, non-bank financial activities, and digital assets.
The Fund also highlighted structural challenges, including high youth unemployment, skills mismatches, and weak incentives to join the workforce. Directors encouraged reforms in vocational education, employment services, and social assistance programs, alongside continued investment in infrastructure, logistics, and trade connectivity.
The IMF additionally stressed the importance of strengthening anti-corruption measures and judicial institutions while maintaining a predictable business environment.
The next IMF review of Georgia's economy is expected to take place in 12 months.
