Top 3 highlights from Georgia’s monthly economic review:

1. Growth remains strong but uneven

GDP grew 7.5% y/y in April, with 4M25 growth at 8.8%. Gains came from ICT, finance, and transport, while construction and manufacturing declined. 2025 growth forecast: 6.8%.

2. Inflation shifts are mostly local

Annual inflation eased to 3.4%, but domestic prices rose 4.7%. The NBG held the key rate at 8.0%, expecting inflation to briefly exceed target. 2025 average inflation forecast: 3.7%.

3. Stronger GEL and export surge

The GEL gained 0.7% in May, aided by FX inflows. Exports jumped 41.1%, while imports fell 3.6%, shrinking the trade gap. Revised GEL/USD forecast: 2.78.