IMF raises Georgia’s economic growth forecast to 6.5% for 2026

The International Monetary Fund (IMF) has raised its forecast for Georgia’s economic growth in 2026 to 6.5%, up from a previously projected 5.3%.

In a concluding statement following its annual consultations with Georgia, the fund said the country’s economy remains resilient despite a high level of global uncertainty, including the war in the Middle East, Caliber.Az reports.

According to the IMF, Georgia’s GDP grew by 7.5% in 2025, while economic activity remained strong in the early months of 2026.

At the same time, inflation accelerated due to rising energy prices, reaching 5.9% in April—nearly double the National Bank of Georgia’s target.

The IMF Executive Board supported the regulator’s recent decision to raise interest rates and stressed that monetary policy should remain sufficiently tight to bring inflation back to target by mid-2027.

The Fund expects economic growth to gradually slow as external shocks ease, converging toward a long-term potential rate of 5% by 2028.

It also highlighted improvements in Georgia’s macroeconomic indicators, noting that international reserves have reached IMF-recommended adequacy levels and public debt has fallen below 35% of GDP.

Among key priorities for the authorities, the IMF cited further accumulation of foreign exchange reserves, maintaining fiscal discipline, and advancing structural reforms to create jobs and improve competitiveness.

The report also pointed to persistent structural challenges, including high youth unemployment, a shortage of skilled labour, and weak incentives for employment. To address these issues, the IMF recommended expanding vocational education, improving public employment programs, and supporting higher-productivity sectors.

In addition, the Fund called for continued investment in transport infrastructure, logistics, and trade corridors, as well as strengthening judicial and anti-corruption institutions while maintaining a predictable and business-friendly environment.

By Bakhtiyar Abbasov