FDI in Georgia stood at US$ 1.3bn in 9M25
FDI in Georgia surged by 101.7% y/y to US$ 533.2mn in 3Q25, following a 12.0% y/y drop in 2Q25. The increase was entirely driven by a shift from net repayments to new foreign debt funding, while equity investment and reinvested earnings remained subdued.
The energy sector was the largest FDI recipient at US$ 91.7mn (+271.0% y/y), followed by transport at US$ 79.8mn (+255.4% y/y), water supply at US$ 71.5mn (+860x y/y), manufacturing at US$ 68.3mn (+5.4% y/y) and ICT at US$ 54.5mn (+467.8% y/y).
The USA topped the list of investors with US$ 93.5mn (17.5% of total FDI), followed by Spain (US$ 72.1mn, 13.5% of total), Türkiye (US$ 70.0mn, 13.1% of total) and Azerbaijan (US$ 56.7mn, 10.6% of total).
Overall, FDI amounted to US$ 1.3bn (+11.0% y/y) in 9M25, equivalent to 4.7% of GDP.
Tourism revenues estimated at US$ 305mn in Nov-25
Tourism revenues increased by 3.7% y/y to US$ 305mn in Nov-25, according to our estimates. Overall, in 11M25, tourism revenues came in at US$ 4.4bn (+4.9% y/y), by our estimates.
We forecast tourism revenues at US$ 4.6bn in 2025 and US$ 4.9bn in 2026.
Government plans a 2.5% deficit in 2026
The Parliament of Georgia approved the 2026 budget law, targeting 5.0% economic growth and a 4.1% GDP deflator. The government plans a consolidated fiscal deficit of 2.5% of GDP. Tax revenues are expected to rise 6.0% y/y, reaching 23.7% of GDP, while privatization revenues are projected at GEL 350mn. Total expenditures are budgeted at 28.9% of GDP, with capex accounting for 7.1% of GDP, broadly in line with 2025E. Total government debt to GDP is projected at 33.5% (2025E 34.1%), reflecting reduced share of external debt (2026F 21.7% of GDP vs. 2025E 23.0%) and an increased share of domestic debt (2026F 11.8% of GDP vs. 2025E 11.1%).
