IMF: Georgia’s economy shows resilience despite regional tensions

The International Monetary Fund (IMF) has concluded its latest mission to Georgia, highlighting strong economic performance at the start of 2026, while warning of emerging risks linked to instability in the Middle East.

According to the Fund’s findings, Georgia entered 2026 with robust momentum. Real GDP growth reached 8.4% in January–February, surpassing the 7.5% recorded in 2025, indicating a stronger-than-expected expansion prior to the outbreak of regional conflict, Caliber.Az reports via Georgian media. 

So far, the economic impact of the war has been limited, primarily affecting the tourism sector. The IMF noted that if the conflict proves short-lived, Georgia’s overall economic growth for 2026 is projected to reach approximately 5.3%, before stabilizing at around 5% over the medium term.

Inflationary pressures, however, remain a concern. Elevated inflation is expected to persist through the first half of 2026, largely driven by rising fuel and electricity prices. The IMF projects that inflation will gradually ease and return to target levels by mid-2027.

The report also highlighted continued investor confidence in Georgia’s economic management. The successful refinancing of $500 million in Eurobonds in January was cited as evidence of strong trust in the country’s macroeconomic fundamentals and policy credibility.

Overall, the IMF assessment suggests that while external risks have increased, Georgia’s economy remains resilient, supported by solid growth and sustained investor confidence.