The Asian Development Bank (ADB) has raised its 2025 economic growth forecast for Georgia from 6% to 7%, following a strong first half of the year marked by robust domestic consumption and rapid expansion in key sectors.

According to the ADB’s latest update, Georgia’s economy grew by approximately 8.3% in the first half of 2025, driven by a 12.9% increase in the services sector and a 28.6% surge in the information and communications sector — reflecting continued momentum in IT, which saw 24.3% growth in 2024.

Other contributing factors included strong private consumption, gains in the construction sector, and increased revenues from tourism and transport, reinforcing Georgia’s position as a key regional transit hub and tourist destination. Remittances also rose 3.5% overall, despite a sharp 26.5% drop from Russia, supported by rising inflows from the U.S. and Europe.

Inflation rose to 4.0% by June 2025 (up from 1.9% at the end of 2024), prompting the National Bank of Georgia to maintain its policy rate at 8.0%. The GEL strengthened by 3.5% due to a weaker U.S. dollar. Fiscal performance remained sound, with a deficit within 3.0% of GDP and public debt at 35%.

The ADB maintained its inflation forecasts for both 2025 and 2026.

In a regional context, Armenia’s growth forecast remains at 5%, while Azerbaijan’s was downgraded from 3.4% to 2.4%.

This upward revision by the ADB follows a similar move by the European Bank for Reconstruction and Development (EBRD), which raised Georgia’s 2025 growth projection from 6% to 7%. Overall, the EBRD has upgraded its forecast for Georgia by 2.4 percentage points since the 2024 parliamentary elections, citing expansion in credit, IT, education, and services.