Georgia’s economy grew by 7.9% y/y in Jan-26
Georgia’s economy expanded by 7.9% y/y in January 2026, above market expectations, following 7.2% y/y growth posted in Dec-25. The growth was mainly driven by strong activity in ICT, financial & insurance, hotels & restaurants and mining sectors. In contrast, the construction and trade sector contracted in January.
We forecast real GDP growth at 6.0% in 2026 (see latest macro forecasts here).
Bank lending increased by 13.3% y/y in Jan-26
In Jan-26, the banking sector loan portfolio grew by 13.3% y/y (-0.9% m/m) excluding FX effect, after a 14.0% y/y rise in previous month. In unadjusted terms, the loan portfolio increased by 12.3% y/y (-0.7% m/m) to GEL 70.4bn (US$ 26.2bn). By segment, loans to legal entities rose by 11.0% y/y (excluding FX effect), while retail loans grew by 15.5% y/y in January. Loan dollarization stood at 42.4% (flat m/m and -1.28ppts y/y) in Jan-26.
On the funding side, similar to the previous month, deposits rose by 15.8% y/y (excluding FX effect), reaching GEL 66.8bn (US$ 24.8bn) in Jan-26. In terms of currency breakdown, GEL deposits rose by 27.9% y/y (+26.9% y/y in Dec-25), while FX deposits growth (exc. FX effect) was 5.2% y/y (+5.8% y/y in Dec-25). As a result, deposit dollarization reduced further to 47.4% (-0.35ppts m/m and -5.84ppts y/y) in Jan-26.
NBG purchased US$ 86.6mn in Jan-26
NBG intervened on FX market and purchased US$ 86.6mn through BMatch platform in Jan-26. Notably, the NBG’s net purchases totaled US$ 2.4bn in 2025.
