Real GDP growth was 9.8% in 1Q25
Georgia’s real GDP increased by 9.8% y/y in 1Q25 according to Geostat, revised upwards from the preliminary estimate of 9.3%. Considering this upgrade, Georgia’s economy grew by 9.1% y/y in 4M25.
By economic sectors, high contributions to the 1Q25 growth came from ICT (+28.6% y/y), education (+27.7% y/y), real estate (+12.9% y/y), public administration (+11.0% y/y), trade (+6.1% y/), healthcare (+17.9% y/y), transport (+9.5% y/y) and financial (+8.7% y/y) sectors. Meanwhile, electricity supply (-5.1% y/y) and agriculture (-4.6% y/y) sectors contracted in 1Q25.
Nominal wages up 11.7% y/y in 1Q25
In 1Q25, average monthly nominal wages in Georgia increased by 11.7% y/y (+8.8% in real terms) to GEL 2,170, after growing by 8.5% y/y in 4Q24, according to Geostat.
By economic activity, the highest monthly average wages were recorded in the following sectors: financial and insurance (GEL 5,515, +22.0% y/y), ICT (GEL 4,163, +5.2% y/y), professional and scientific activities (GEL 2,976, +11.3% y/y), construction (GEL 2,909, +10.8% y/y) and mining (GEL 2,889, +36.6% y/y. The lowest average monthly wages were traditionally in education (GEL 1,341, +19.1% y/y), water supply (GEL 1,368, +10.6% y/y) and agriculture (GEL 1,474, +11.8% y/y) in 1Q25.
NBG kept its key rate unchanged at 8.0%
On June 18, 2025, the Monetary Policy Committee of the NBG decided to keep the key rate unchanged, reflecting a cautious approach amid mixed inflation dynamics. According to NBG, headline inflation remains close to the target, while core and service sector inflation are below 3.0%, indicating stable inflation expectations. The regulator noted that upward pressure continues to stem from food prices, driven by global market developments, while lower prices of imported goods are helping to offset these effects. The NBG forecasts that inflation will temporarily exceed the target level in 2025 due to base effect and external factors, but will stabilize around 3.0% over the medium term. The next NBG meeting is scheduled for July 30, 2025.
Money transfers increased by 11.6% y/y in May-25
Money transfers rose by 11.6% y/y to US$ 317.4mn in May-25, after a 6.1% y/y growth in previous month. The increase was driven by a 16.4% y/y rise in transfers from the EU (supported by Euro appreciation), followed by strong growth of transfers from the USA and Kyrgyzstan, up by 25.2% y/y and 70.7% y/y, respectively.
Overall, in 5M25 remittances were up by 1.8% y/y to US$ 1.4bn.
Producer price index increased by 4.9% y/y in May-25
Annual PPI for industrial goods increased by 4.9% in May-25, after increasing by 5.1% y/y in previous month. The annual growth was primarily driven by a rise in prices in the manufacturing sector (+3.2% y/y), followed by electricity supply (+13.8% y/y) and mining (13.3% y/y).
