Georgia in 2026: Portrait of a Rapidly Developing Country

Georgia (Sakartvelo) is a South Caucasus state covering approximately 69,700 km², bordered by Russia to the north, Turkey and Armenia to the south, Azerbaijan to the east, and the Black Sea to the west. With an estimated population of 3.7 million in 2025, of whom 32% live in the capital Tbilisi, the country has built one of the most dynamic economies in the region in less than thirty years.

Exceptional Economic Growth

Georgia's nominal GDP reached 104.6 billion GEL (approximately USD 38.1 billion) in 2025, representing a 12.4% increase over 2024. In real terms, GDP growth stood at 7.5% in 2025, following a record 9.4% in 2024. In the first quarter of 2026, the momentum remained strong with year-on-year expansion of 9.1%, driven by the IT, transport, manufacturing, and mining sectors.

These performances have led the IMF to regularly rank Georgia among the three most dynamic economies in the world in terms of GDP per capita growth in the 21st century.

A Strategic Crossroads Between Europe and Central Asia

Positioned along the historic Silk Roads, Georgia is today a key link in the Middle East–Caucasus–Europe transit corridor. The country has an extensive network of free trade agreements (FTAs), including a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU and FTAs with China, Turkey, and CIS countries. These agreements give businesses established in Georgia access to a combined market of billions of consumers.

A Recognised Business Environment

Georgia ranks 7th globally in the Trade component of the World Bank's B-READY Index, 35th in the Heritage Foundation's 2025 Index of Economic Freedom (20th in Europe), and 41st in Transparency International's Corruption Perceptions Index (2023). Public debt is maintained below 35% of GDP, and the 2025 budget deficit came in below forecast (1.7% of GDP).

A Booming Tourism and Digital Hub

In 2025, Georgia welcomed 7.8 million international visitors, generating 15 billion GEL in tourism revenues. At the same time, IT and BPO service exports exceeded USD 700 million, up from just USD 110 million in 2020. More than 46,000 people work in the IT/BPO sectors, with salaries 30–40% lower than in Central Europe, making it a top destination for shared services operations.

Monetary and Financial Stability

The national currency, the lari (GEL), has shown relative stability. In 2025, the average exchange rate was 2.84 GEL per EUR. Inflation slightly exceeded the National Bank's 3% target (4.6% in February 2026), mainly due to regional geopolitical tensions affecting energy prices. The National Bank maintains its policy rate at 8% in a cautious approach. The domestic corporate bond market crossed the historic threshold of 3 billion GEL at the start of 2026.

In summary, Georgia combines robust growth, advantageous taxation, trade openness, and strategic positioning.