Georgia’s economy grew by 9.0% y/y in Mar-25
Georgia’s economy grew by 9.0% y/y in Mar-25, after a 7.7% y/y growth in previous month. Cumulatively, real GDP growth came in at 9.3% y/y in 1Q25. This growth was mainly driven by increased activity in the ICT, professional and scientific, financial and insurance, transport and construction sectors, while manufacturing sector contracted. We forecast Georgia’s real GDP growth at 6.8% in 2025 (see latest macro forecasts here).
Annual inflation was 3.4% in Apr-25
In Apr-25, annual inflation in Georgia was 3.4% y/y, down from 3.5% y/y in the previous month. The overall inflation was mainly driven by a continued rise in domestic inflation, reaching 4.7% y/y in Apr-25 (up from 4.0% y/y in Mar-25), along with a 5.0% y/y increase in mixed goods inflation (down from 5.7% y/y in Mar-25). Conversely, imported inflation turned deflationary, declining by -1.0% y/y in April, after a 0.2% y/y increase in previous month. Notably, core inflation, excluding volatile food, energy and tobacco prices, slightly reduced to 2.3% y/y in Apr-25, after a 2.4% posted in previous month.
By categories, annual inflation in Apr-25 was largely driven by price increases in food and non-alcoholic beverages (+7.0% y/y, +2.43ppts), healthcare (+9.2% y/y, +0.77ppts), education (+4.9% y/y, +0.25ppts), alcoholic beverages & tobacco (+3.3% y/y, +0.22ppts) and hotels & restaurants (+6.1% y/y, +0.20ppts) categories. In contrast, as in the previous month, the communication category recorded a deflation of -12.4% y/y (-0.46ppts to overall inflation), followed by transport (-2.2% y/y, -0.27ppts) and furnishings, household equipment and maintenance (-2.7% y/y, -0.15ppts) in Apr-25.
On a monthly basis, there was a 0.2% y/y inflation in Apr-25, mainly due to price increase in food and non-alcoholic beverages (+0.4% m/m, +0.18ppts) category.
We forecast average annual inflation at 3.7% in 2025.
