Georgia’s economy grew by 7.5% y/y in Apr-25
Georgia’s economic growth slowed to 7.5% y/y in Apr-25, after a 9.0% y/y growth in previous month. Cumulatively, real GDP growth came in at 8.8% y/y in 4M25. The growth in April was mainly driven by increased activity in the ICT, financial, mining, real estate and transport sectors, while construction and manufacturing sectors contracted. We forecast Georgia’s real GDP growth at 6.8% in 2025 (see latest macro forecasts here).
Bank lending grew by 15.5% y/y in Apr-25
In Apr-25, the banking sector loan portfolio grew by 15.5% y/y (+0.7% m/m), excluding FX effect, following a 16.6% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 17.8% y/y (+1.3% m/m), reaching GEL 64.2bn (US$ 23.3bn), after growing 17.9% y/y in Mar-25. By sector, loans to legal entities grew by 16.8% y/y (excluding FX effect), while retail loans increased by 15.2% y/y. Loan dollarization increased slightly by 0.14ppts m/m to 43.3%, though it is down -1.49ppts y/y in Apr-25.
On the deposits side, there was a 10.2% y/y increase (excluding FX effect) to GEL 58.8bn (US$ 21.2bn) in Apr-25, following a 11.3% y/y growth in previous month. In terms of currency breakdown, GEL deposits grew by 3.8% y/y (+5.9% y/y in Mar-25) and FX deposits (exc. FX effect) increased by 17.0% y/y (+16.7% y/y in Mar-25). Notably, deposit dollarization reduced further by -0.60ppts m/m to 52.2% in Apr-25, but it is still up 3.91ppts y/y.
NBG purchased US$ 266.4mn in Apr-25
In Apr-25, GEL appreciation trend enabled the NBG to purchase US$ 266.4mn in the FX market and build FX reverses. Overall, in 4M25, the NBG purchased US$ 368.1mn.
