Georgia’s economy expanded by 6.3% y/y in Jun-25
In Jun-25, Georgia’s economy recorded a 6.3% y/y growth, moderating from 7.5% y/y in May. This brought cumulative real GDP growth to 8.3% y/y in 1H25. The expansion was primarily driven by solid performance in ICT, manufacturing, financial & insurance, transport & storage, and trade sectors, while construction and energy sectors contracted. We forecast real GDP growth at 7.5% in 2025 (see latest macro forecasts here).
NBG kept its key rate unchanged at 8.0%
On 30 July 2025, the NBG kept the monetary policy rate unchanged at 8.0%, reflecting a cautious stance amid strong economic growth and moderate inflationary pressures. The central bank also revised its 2025 real GDP growth forecast upward – from 6.7% to 7.4%. With persistent global uncertainties posing inflationary risks, the NBG considers the current policy rate appropriate for ensuring medium-term price stability. The NBG expects inflation to temporarily exceed its 3.0% target in 2025, averaging around 3.8%, before gradually stabilizing at the target level over the medium term. The next monetary policy meeting is scheduled for 10 September 2025.
