Top 3 highlights from Georgia’s monthly economic review:

1. Growth upgraded

Georgia’s economy expanded by 8.8% y/y in 5M25, supported by strong performance in key sectors. We revised the 2025 GDP growth forecast upward to 7.5% from the previous 6.8%.

2. Domestic inflation persists

Annual inflation ticked up to 3.5% in May, mainly due to domestic price pressures (+4.9% y/y), while core inflation eased.

3. GEL strengthens, NBG builds reserves

GEL appreciated 0.4% m/m in June; NBG bought $613.5mn during Mar-May. 2025 GEL/USD forecast stands at 2.78.