Georgia’s economy grew by 6.0% y/y in Oct-25
In Oct-25, Georgia’s economy grew by 6.0% y/y, after a 6.4% y/y growth posted in previous month. Cumulatively, real GDP increased by 7.6% y/y in 10M25. The growth in October was mainly driven by stronger activities in the ICT, transport & storage, financial & insurance and real estate sectors, while construction, mining and energy sectors contracted. We forecast real GDP growth at 7.5% in 2025 and 6.0% in 2026 (see latest macro forecasts here).
Bank lending increased by 12.7% y/y in Oct-25
In Oct-25, the banking sector loan portfolio grew by 12.7% y/y (+0.8% m/m), excluding FX effect, after a 13.3% y/y growth in previous month. In unadjusted terms, the loan portfolio increased by 13.2% y/y (+0.8% m/m), reaching GEL 68.0bn (US$ 25.1bn). By segment, loans to legal entities increased by 10.6% y/y (excluding FX effect), while retail loans rose by 14.6% y/y. Loan dollarization reduced to 42.0% (-0.26ppts m/m and -1.29ppts y/y) in Oct-25.
On the funding side, deposits increased by 13.9% y/y (excluding FX effect) to GEL 65.6bn (US$ 24.2bn) in Oct-25, compared with 13.7% y/y growth in previous month. In terms of currency breakdown, GEL deposits continued to accelerate, rising by 18.5% y/y (+12.7% y/y in Sep-25), while FX deposits (exc. FX effect) growth slowed to 9.5% y/y (+14.6% y/y in Sep-25). As a result, deposit dollarization reduced further to 48.8% (-0.46ppts m/m and -1.93ppts y/y) in Oct-25.
NBG purchased US$ 167.4mn in Oct-25
NBG intervened on FX market and purchased US$ 167.4mn through BMatch platform in Oct-25. Overall, the NBG’s net purchases reached US$ 1.8bn in 10M25.
