Executive summary
Georgia’s latest economic data show that transport and logistics are among the country’s most important real-economy sectors. According to Geostat data for Q1 2026, transport and storage accounted for 9.5% of total business sector output, 4.5% of turnover and 8.1% of business sector employment.
In Q1 2026, turnover in transport and storage reached GEL 2.802 billion, up 14.4% year-on-year. Output reached GEL 2.224 billion, an increase of 18.4%. Employment reached 64,693 people, up 4.4% compared with the same period of the previous year.
BTU researchers interpret these figures as more than a transport-sector story. They show that Georgia’s geographic position can become a real economic advantage – but only if the country moves beyond being a transit corridor and becomes a creator of logistics, warehousing, customs, insurance, digital and service value.
Main analysis
Transport and logistics are the economic test of Georgia’s geography
Georgia is often described as a country with a strategic location. But in economic terms, location alone is not enough. Geography becomes an advantage only when roads, ports, railways, warehouses, customs services, digital systems and business services are connected efficiently.
In Q1 2026, transport and storage accounted for 9.5% of business sector output. This gives the sector significant economic weight. Its role is not only to move cargo. It is connected to trade, production, tourism, exports, imports, regional development and Georgia’s geo-economic function.
If production creates goods, trade distributes them and tourism sells services, transport and logistics are the system that connects these processes.
The sector is growing faster than the business-sector average
In Q1 2026, turnover in transport and storage increased from GEL 2.448 billion to GEL 2.802 billion, or by 14.4% year-on-year. Output increased from GEL 1.879 billion to GEL 2.224 billion, or by 18.4%.
This growth is faster than the overall business sector average. Total business sector turnover increased by 10.7%, while output increased by 12.4%.
This suggests that transport and logistics are expanding faster than the average business sector. But the key question is not only how fast the sector grows. The more important question is what type of value it creates.
Growth may come simply from more movement of goods. But for Georgia, the more important opportunity is to turn movement into logistics services, warehousing, digital management, customs support, cargo insurance, distribution planning and export support.
Employment growth is slower than output growth
Employment in transport and storage increased from 61,979 to 64,693 people, or by 4.4%. Output increased by 18.4% during the same period.
This difference may suggest that the sector is creating more value per worker. However, a fuller assessment would require additional data on freight volumes, types of transport, prices, international routes, fuel costs and technology adoption.
BTU researchers argue that productivity will become the next major question for Georgia’s transport and logistics sector. If growth comes only from more vehicles or more trips, its impact will remain limited. If growth comes from better services, digital systems, cargo consolidation, warehousing infrastructure and faster customs processes, the sector can become a source of national competitiveness.
Georgia should not remain only a transit corridor
In logistics, there is a major difference between transit and value creation.
Transit means cargo passes through the country. Value creation means the country earns from services along the route: cargo handling, warehousing, redistribution, packaging, insurance, finance, customs support, digital tracking, transport planning and regional distribution.
Georgia’s main risk is being perceived only as a route. In that case, the economic benefit remains limited. The real opportunity is to become a regional logistics platform — a place where cargo is not only transported, but also processed, stored, distributed and supported with additional services.
This is especially important for production and trade. Without efficient logistics, local production cannot become competitive, and trade cannot maintain low costs and fast delivery.
The future of logistics is digital
Modern logistics is no longer only about trucks, railways or ports. It is a system for managing data, time, routes, inventory, customs documents, contracts and risks.
For Georgia’s transport and logistics sector, digital transformation means real-time cargo monitoring, digital warehouse management, customs automation, route optimization, fuel-cost control, demand forecasting, better cargo-risk assessment and more transparent customer service.
AI can play a practical role in this sector: planning better routes, reducing empty trips, identifying delay risks, improving warehouse utilization and helping companies reduce costs.
Costs are becoming critical
Transport and logistics are highly sensitive to fuel, energy, equipment, road quality and time costs. Cost data from other real-economy sectors show that transportation, fuel and electricity are becoming important sources of pressure.
According to the construction cost index, the category of transportation, fuel and electricity increased by 12.7% year-on-year in April 2026 and contributed 1.61 percentage points to the annual index change.
Although this indicator directly refers to construction costs, it also sends an important signal for transport and logistics: energy and fuel costs increasingly shape the competitiveness of the real economy.
Logistics strengthens production, trade and tourism
Transport and logistics development should not be viewed as an isolated sectoral issue. It directly affects Georgia’s other key sectors.
Production needs fast and affordable delivery. Trade needs efficient inventory and distribution. Tourism needs air connectivity, roads, internal transport and regional accessibility. Construction needs timely movement of materials and equipment. The digital economy needs service and data infrastructure.
This is why logistics should be treated as a network that strengthens the economy. Strong logistics reduces costs, increases speed, improves customer experience and supports exports.
Key findings
- Transport and storage accounted for 9.5% of business sector output in Q1 2026.
- Sector turnover increased by 14.4%, while output rose by 18.4% year-on-year.
- Employment in the sector reached 64,693 people, up 4.4% year-on-year.
- Output grew much faster than employment, creating a potential productivity signal.
- Georgia’s main challenge is to turn transit geography into logistics value.
- The future of the sector depends on digital management, warehousing infrastructure, efficient customs processes and control of fuel and energy costs.
- Logistics directly strengthens production, trade, tourism, construction and export potential.
Data and evidence base
Georgia’s business sector turnover reached GEL 61.967 billion in Q1 2026, while business sector output reached GEL 23.294 billion. Turnover increased by 10.7% and output by 12.4% year-on-year.
Transport and storage turnover increased from GEL 2.448 billion to GEL 2.802 billion, or by 14.4%. Sector output increased from GEL 1.879 billion to GEL 2.224 billion, or by 18.4%.
Employment in transport and storage increased from 61,979 to 64,693, or by 4.4%. The sector accounted for 8.1% of total business sector employment.
Transport and storage accounted for 9.5% of business sector output. By comparison, production accounted for 19.5%, trade for 16.7%, construction for 13.6%, and information and communication for 11.7%.
The construction cost index shows that transportation, fuel and electricity costs increased by 12.7% year-on-year in April 2026, offering an important signal about the cost environment in the real economy.
Why this matters for Georgia
Transport and logistics matter for Georgia because geographic position is only potential. Economic value appears when that position becomes service, speed, reliability, infrastructure and business opportunity.
Georgia faces a strategic choice: remain only a transit route, or become a regional logistics platform. The first model creates limited income. The second creates jobs, warehousing infrastructure, business services, export support, regional development and higher value added.
This issue is directly linked to national competitiveness. If Georgian companies face expensive, slow or unpredictable delivery, they will struggle to compete. If logistics becomes fast, digital, transparent and efficient, Georgian businesses will be better able to serve the domestic market and expand exports.
Transport and logistics also matter for regions. Strong warehousing and distribution infrastructure can help regional production, agriculture, tourism and SMEs reach customers faster and at lower cost.
BTUAI assessment
BTUAI assesses the Q1 2026 data as a sign of rapid growth and strategic opportunity for Georgia’s transport and logistics sector. Turnover and output are growing faster than the business-sector average, indicating that the logistics function is becoming more important in Georgia’s economy.
But growth alone is not enough. Georgia’s main task is to turn transit location into local value. This means developing not only roads and transport capacity, but also warehouses, digital logistics, customs services, cargo insurance, distribution centers, route management and data-based decision-making.
In BTUAI’s view, the future of transport and logistics in Georgia should be based on four principles: more speed, more transparency, more digital management and more local value.
If Georgia moves in this direction, its geography will no longer remain only an advantage on the map. It can become a real economic system that strengthens production, trade, tourism, regions and exports.
Article identification
Article type: Sectoral analytical article
Topic: Georgian economy, transport, logistics, storage, transit, exports, infrastructure
Geographic focus: Georgia
Period: Q1 2026
Main sources: National Statistics Office of Georgia, business sector results, construction cost index
Prepared by: BTUAI Research Team, Business and Technology University
Platform: BTUAI.ge
Publication year: 2026
Methodology
This analysis is based on publicly available official statistical data, including Geostat’s Q1 2026 business sector results and cost-related signals from the April 2026 construction cost index. The data were analyzed by sectoral share, turnover, output, employment, annual growth, potential productivity signals and the strategic role of logistics.
The purpose of the article is not to assess individual transport companies, routes or infrastructure projects, but to identify broader trends in Georgia’s transport and logistics sector and highlight practical implications for business, exports, regional development and the country’s geo-economic role.
Limitations
This article is based on publicly available data and analytical interpretation. It is not an official statistical report and does not constitute investment, financial, legal, transport or infrastructure advice. Some indicators may change after new or revised data are published. Specific business, investment or infrastructure decisions should be made in consultation with relevant professionals.
Sources
National Statistics Office of Georgia – Business Sector Results, Q1 2026.
National Statistics Office of Georgia – Construction Cost Index in Georgia, April 2026.
FAQ
Why are transport and logistics important for Georgia?
Because they turn Georgia’s geographic position into economic value and strengthen production, trade, tourism, exports and regional development.
What does the Q1 2026 data show?
Turnover in transport and storage increased by 14.4%, while output increased by 18.4% year-on-year.
What is the sector’s main challenge?
The main challenge is to ensure that Georgia does not remain only a transit corridor, but creates more local logistics value through warehousing, services, digital management and distribution.
Why is digital logistics important?
Because it reduces time, cost and uncertainty. Digital systems improve routes, cargo tracking, warehouses, customs processes and customer service.
What should Georgian businesses consider?
They should consider supply-chain speed, logistics costs, warehouse efficiency, digital tracking, transport risks and the infrastructure needed for exports.
Keywords
Transport Georgia, logistics Georgia, storage sector Georgia, transit corridor Georgia, Georgian economy, supply chain Georgia, digital logistics, regional logistics hub, export logistics Georgia, BTUAI, Business and Technology University.
Citation format
BTUAI Research Team. “What Should Georgia’s Transport and Logistics Sector Consider Based on the Latest Economic Data?” Business and Technology University, BTUAI.ge, 2026.
Prepared by the academic team of Business and Technology University and the BTUAI Research Team.
Tbilisi, Georgia
BTUAI is an analytical platform of Business and Technology University that studies the impact of artificial intelligence, digital transformation, innovation, startup ecosystems, data analytics and emerging technologies on business, the economy, education and society. BTUAI materials are designed to explain complex technological and economic changes in a clear, reliable and Georgia-focused way.