Real GDP growth was 7.3% in 2Q25
Georgia’s real GDP increased by 7.3% y/y in 2Q25 according to Geostat, revised upwards from the preliminary estimate of 7.1%. Considering this upgrade, economic growth stood at 8.1% y/y in 7M25.
By economic sectors, high contributions to the 2Q25 growth came from ICT (+37.1% y/y), education (+28.9% y/y), art & entertainment (+16.0% y/y), public administration (+9.1% y/y), financial (+11.8% y/y), healthcare (+14.3% y/y) and hotels & restaurants (+8.4% y/) sectors. Meanwhile, electricity supply (-7.0% y/y), construction (-2.6% y/y) and agriculture (-2.5% y/y) sectors contracted in 2Q25.
Nominal wages up 10.3% y/y in 2Q25
In 2Q25, average monthly nominal wages in Georgia increased by 10.3% y/y (+6.5% in real terms) to GEL 2,212, following a 11.7% y/y rise in 1Q25.
The highest monthly average wages were recorded in the following sectors: ICT (GEL 4,177, +5.4% y/y), financial and insurance (GEL 3,732, +2.5% y/y), construction (GEL 3,468, +17.7% y/y) and professional and scientific activities (GEL 2,995, +4.3% y/y). The lowest average monthly wages were traditionally in education (GEL 1,367, +19.3% y/y), water supply (GEL 1,428, +14.4% y/y) and agriculture (GEL 1,506, +3.9% y/y) in 2Q25.
Trade deficit reduced by 7.7% y/y in Aug-25
In Aug-25, goods exports decreased by 5.9% y/y to US$ 603.0mn, after a 10.8% y/y drop in previous month. Goods imports also declined by 6.9% y/y to US$ 1.4bn, after a 3.6% y/y reduction in previous month. Consequently, the trade deficit narrowed by 7.7% y/y to US$ 752.4mn in Aug-25.
The top 5 exported commodities were cars (-12.6% y/y), precious metals (+18.0% y/y), ferro-alloys (+63.2% y/y), spirits (-4.5% y/y) and wine (-9.5% y/y) in Aug-25. A 12.4% of exports were directed to the EU (+58.2% y/y), 73.0% to the CIS (-8.7% y/y) and 14.6% to other countries (-21.0% y/y).
The top 5 imports were cars (-30.4% y/y), petroleum (+7.0% y/y), pharmaceuticals (+14.5% y/y), phones (-7.2% y/y) and gases (-1.6% y/y) in Aug-25.
Overall, in 8M25, the trade deficit increased by 11.5% y/y to US$ 7.4bn, as exports grew by 6.7% y/y to US$ 4.4bn and imports were up by 9.7% y/y, reaching US$ 11.8bn. Notably, excluding one-off paintings/drawings imports, goods imports rose by 5.2% y/y and the trade deficit was up 4.2% y/y in 8M25.
Money transfers increased by 10.7% y/y in Aug-25
Money transfers increased by 10.7% y/y to US$ 321.5mn in Aug-25, following a 13.0% y/y growth in previous month. Among the top countries, inflows grew from the EU (+11.7% y/y, 46.9%), the USA (+16.8% y/y, 18.4% of total), Kyrgyzstan (+41.3% y/y, 3.5% of total) and Israel (+12.7% y/y, 7.0% of total). In contrast, transfers declined from Russia (-2.9% y/y, 12.9% of total) and Kazakhstan (-0.5% y/y, 2.8% of total).
Overall, in 8M25, money transfers increased by 5.7% y/y to US$ 2.4bn. We forecast money transfers at US$ 3.5bn in 2025.
