Georgia’s economy grew by 7.5% y/y in 2025
In Dec-25, Georgia’s economy grew by 7.2% y/y, the same rate as in November. Cumulatively, real GDP increased by 7.5% y/y in 2025, fully in line with our forecast. The growth in December was mainly driven by stronger activity in manufacturing, ICT, transport & storage and hotels & restaurants, while construction sector contracted.
We forecast real GDP growth at 6.0% in 2026 (see latest macro forecasts here).
Bank lending increased by 14.0% y/y in Dec-25
In Dec-25, the banking sector loan portfolio grew by 14.0% y/y (+2.7% m/m) excluding FX effect, up from 13.8% y/y in previous month. In unadjusted terms, the loan portfolio increased by 13.9% y/y (+2.9% m/m) to GEL 70.9bn (US$ 26.3bn). By segment, loans to legal entities rose by 12.9% y/y (excluding FX effect), at the same pace as in previous month, while retail loans increased by 15.0% y/y, following 14.6% y/y growth in November. Loan dollarization stood at 42.4% (+0.58ppts m/m and -0.95ppts y/y) in Dec-25.
On the funding side, deposits growth accelerated to 15.8% y/y (excluding FX effect), reaching GEL 66.9bn (US$ 24.8bn) in Dec-25, up from 13.9% y/y growth posted in November. In terms of currency breakdown, GEL deposits continued to accelerate, rising by 26.9% y/y (+22.2% y/y in Nov-25), while growth in FX deposits (exc. FX effect) slowed further to 5.8% y/y (+6.1% y/y in Nov-25). As a result, deposit dollarization reduced further to 47.7% (-0.18ppts m/m and -4.95ppts y/y) in Dec-25.
NBG purchased US$ 361mn in Dec-25
NBG intervened on FX market and purchased US$ 361mn through BMatch platform in Dec-25. Overall, the NBG’s net purchases reached US$ 2.4bn in 2025.
