Georgia’s economy grew by 11.1% y/y in Jan-25
Georgia’s economic growth accelerated, up by 11.1% y/y in Jan-25, after a 6.7% y/y growth in previous month. This growth was mainly driven by increased activity in the professional & scientific, transport, construction, ICT, manufacturing and trade sectors, while the mining sector contracted.
Given January’s strong growth, we will consider an upward revision to our baseline growth projection of 5.0% for the full year 2025 after February’s preliminary data becomes available (see latest macro forecasts here).
Bank lending increased by 17.9% y/y in Jan-25
In Jan-25, the banking sector loan portfolio increased by 17.9% y/y (-0.3% m/m), excluding FX effect, after a 17.0% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 20.8% y/y (+0.7% m/m), reaching GEL 62.7bn (US$ 21.8bn), after growing 18.2% y/y in Dec-24. By sector, corporate loans grew by 20.1% y/y (excluding FX effect), while retail loans increased by 16.4% y/y. Loan dollarization rose to 43.7% (-0.98ppts y/y and +0.36ppts m/m) in Jan-25.
On the deposits side, there was a 12.6% y/y increase (excluding FX effect) to GEL 59.0bn (US$ 21.0bn) in Jan-25, after a 13.4% y/y growth in previous month. In terms of currency breakdown, GEL deposits growth slowed further to 8.0% y/y (+10.5% y/y in Dec-24), while FX deposits (exc. FX effect) increased by 17.3% y/y (+16.3% y/y in Dec-24). Consequently, deposit dollarization increased further to 53.4% (+3.59ppts y/y and +0.60ppts m/m) in Jan-25.
