The European Bank for Reconstruction and Development (EBRD) has revised its 2025 economic growth forecast for Georgia upward to 7%, the highest projected GDP growth among Eastern Europe and Caucasus countries, which include Armenia, Azerbaijan, Moldova, and Ukraine.

According to the EBRD report, Georgia is set to lead the region in economic performance, outpacing its neighbors amid broader global and regional challenges.

Other key updates from the EBRD forecast:

Azerbaijan: Growth forecast lowered by 1% to 2% in 2025.

Ukraine: Down 0.8 points to 2.5% in 2025, but expected to rebound to 5% in 2026.

Moldova: Slight drop of 0.3 points to 1.5% this year, with a projected rise to 3.8% in 2026.

Türkiye: Growth forecast raised to 3.1% in 2025 and 3.2% in 2026.

Overall, economies in EBRD regions are expected to grow by 3.1% in 2025, a modest 0.1% increase from May, with 3.3% growth projected for 2026.

Despite positive adjustments for some countries, the report warns of ongoing risks, citing global geopolitical tensions, rising competition from China, and limited fiscal space as key challenges facing the region’s economies.