BAKU, Azerbaijan, August 2. Georgia’s economy
expanded by 7.9% in real terms in January–June 2026, supported by
stronger activity in manufacturing, transport, construction,
information and communication, and financial services, while
merchandise exports recorded double-digit growth.
Data from the National Statistics Office of Georgia reveals that
country’s estimated real GDP growth reached 8.6% year-on-year in
June 2026. “The estimated real Gross Domestic Product (GDP) growth
rate amounted to 8.6% for June 2026 compared to previous year and
the average real GDP growth for January – June 2026 equaled 7.9%,”
the statement of the office says. According to the data, the main
contributors to monthly growth were manufacturing, transportation
and storage, construction, information and communication, and
financial and insurance activities. At the same time, declines were
recorded in mining and quarrying, as well as in the energy
sector.
External trade indicators also showed positive momentum.
Georgia’s exports of goods increased 20% year-on-year in
January–June 2026 to $3.88 billion, while imports grew only 0.7% to
$9.05 billion. Total merchandise trade turnover reached $12.93
billion, up 5.8% compared with the same period of 2025.
Business activity remained strong during the period. The number
of newly registered enterprises reached 7,049 in June 2026,
increasing 13.7% year-on-year. Turnover of VAT-paying businesses
used in the rapid GDP estimate reached 16.71 billion lari, up 14%
compared with June 2025.
Consumer price growth remained moderate. The consumer price
index increased 5.8% year-on-year in June, while producer prices
for industrial products rose 5.9% over the same period. On a
monthly basis, consumer prices increased by 0.1%, while industrial
producer prices declined by 0.8%.
Trend’s analysis
shows that Georgia’s H1 2026 growth pattern suggests that economic
expansion is increasingly supported by a combination of export
activity, transport services and investment-related sectors rather
than by domestic consumption alone.
The strongest signal comes from the divergence between exports
and imports. Export growth of 20% compared with import growth of
only 0.7% indicates a significant improvement in external trade
dynamics. Trend’s
calculations show that Georgia’s trade turnover increased by
approximately $710 million year-on-year in H1 2026, while the trade
deficit narrowed as export revenues expanded faster than import
demand.
The transport sector’s contribution is particularly significant
given Georgia’s role as a transit hub between Europe and Asia.
Higher activity in transportation and storage coincides with record
first-half cargo volumes reported by Georgian ports and railways,
reflecting the continued development of the Trans-Caspian
International Transport Route (TITR, or Middle Corridor). The
combination of growing transit flows and stronger domestic exports
is increasing the importance of logistics as a component of
Georgia’s economic growth model.
Manufacturing growth also played a key role in the first half of
the year. The sector’s expansion, together with higher exports,
suggests that industrial activity is contributing more actively to
economic performance. However, the decline in mining and energy
indicates that growth remains uneven across sectors and that some
traditional areas of the economy continue to face pressure.
The increase in VAT-paying business turnover by 14% and the rise
in newly registered enterprises point to continued private sector
activity. At the same time, the relatively moderate growth in
imports suggests that business expansion has not translated into a
comparable increase in import demand, which may reflect stronger
use of domestic capacity or a shift toward higher-value-added
activity.
In Trend’s
assessment, Georgia’s main economic priority will be maintaining
this balance between growth drivers. Continued investment in
transport infrastructure, industrial capacity and digital sectors
will be important for sustaining momentum, while export
diversification will remain a key factor in reducing reliance on
external demand in individual sectors.
