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.