Georgia’s 2026 economic data present a strong picture: real GDP increased by 9.0% in the first quarter, exports grew by 19.8% in January-May, and local exports – exports excluding re-exports – increased by 66.1%, reaching 62.1% of total exports. Together, these three indicators send an important signal: Georgia’s economy is not only growing, but also raising a new question about local value creation.
But this picture should not be read with optimism alone. High economic growth is a strong indicator, but it does not automatically mean that the country has already moved toward a more sustainable model based on production and exports. In January-May 2026, external trade turnover reached USD 10.44 billion, but imports still amounted to USD 7.33 billion, while the trade deficit remained at USD 4.22 billion. This means that Georgia still buys much more than it sells, and economic growth remains strongly connected to external supply.
BTU researchers assess that the most important question in the 2026 data is not only how fast the economy is growing, but what is being created inside the country. If local export growth turns into stronger local production, processing, technology services, logistics services, brands and quality standards, Georgia can move toward a more sustainable growth model. If this growth remains dependent on a few major commodity groups, raw materials and semi-processed goods, the economy will remain vulnerable to global prices, demand and trade shocks.
Therefore, the main question in Georgia’s 2026 economic picture is this: can the country use strong growth and rising exports to strengthen real local production?
Georgia’s 9.0% GDP growth appears strong enough to describe the beginning of the year as successful. But such growth always requires a deeper question: what stands behind it, and how much of it comes from sectors that can continue creating value in the future?
The sectoral picture of Q1 2026 shows that the main energy of growth comes from services, the digital sector, transport, financial activity and tourism-related areas. Information and communication grew by 36.0% and accounted for 10.4% of GDP. This means ICT is no longer only a promising sector; it is already one of the largest and fastest-growing pillars of Georgia’s economy. The 18.0% growth in transport and storage shows that the country’s logistics function is becoming a more visible economic factor.
At the same time, not every part of the economy is strengthening equally. Agriculture declined by 3.3%, while construction declined by 2.0%. This is an important detail because strong overall growth can sometimes hide sectoral weaknesses. If the economy grows rapidly but agriculture, construction or parts of local production lag behind, the benefits of growth may be distributed unevenly and may not reach all regions or businesses in the same way.
The external trade picture is also mixed. Export growth of 19.8% is a positive signal, especially while imports declined by 1.9%. But the trade deficit remains high. A USD 4.22 billion deficit shows that the country’s economic demand continues to be largely covered by imports. This is not only a macroeconomic issue; it means that many businesses, consumers and sectors depend on external markets, foreign prices, logistics and global supply.
Vehicles occupy a particularly large place in this picture. In January-May 2026, motor cars were the largest export category at USD 734.6 million, although their exports declined by 24.6% year-on-year. In imports, motor cars remained the leading category at USD 1.25 billion, equal to 17.1% of total imports. This means that the vehicle sector remains one of the main components of Georgia’s trade model, but also one of its key risks. Regulation, demand in partner markets, customs regimes or shifts in the global vehicle market can quickly affect Georgia’s trade structure.
This is why local export growth matters so much. When local exports rise by 66.1% and reach 62.1% of total exports, this may be a sign that local value creation is becoming more visible inside Georgia’s exports. In the same period of 2025, local exports accounted for 44.8% of total exports, which means that the internal structure of exports changed significantly within one year.
However, the composition of local exports shows that the question of local production remains open. The largest local export category was petroleum and petroleum products at USD 352.2 million, followed by precious-metal ores and concentrates at USD 255.6 million, ferroalloys at USD 130.8 million, copper ores and concentrates at USD 112.3 million, and natural grape wines at USD 92.3 million. This shows that a large part of local export growth comes from resource-based, commodity and semi-processed categories.
The question of local production is therefore not only about exporting more. The main issue is how much of the export structure is connected to processing, technology, services, brands, quality, design, knowledge and standards. If local exports depend only on a few raw materials or commodity groups, Georgia will remain vulnerable. If local export growth spreads to food processing, packaging, local FMCG brands, light manufacturing, logistics services, IT and technology services, then the 2026 data may become the beginning of deeper economic transformation.
For business, the practical question is clear: where is the opportunity? The opportunity lies in sectors where Georgia is already moving but has not yet created enough local value. Growth in trade, transport and exports can remain only goods movement, but it can also become service — warehousing, quality control, certification, data analytics, regional distribution, branded products and export-ready production. The difference between these two paths will determine what Georgia’s economy looks like in the coming years.
BTU researchers assess that Georgia’s main opportunity in 2026 is to strengthen the parts of local production and services that are already connected to growing sectors. ICT growth can help businesses with data analysis, sales, operations and export management. Transport growth can become regional logistics services. Local export growth can encourage quality, packaging, certification and brand development. But this will not happen automatically; it requires public policy, organizational growth in business, access to finance, professional talent and constant market analysis.
Key findings
The 2026 data show that Georgia’s economy is growing strongly, but the question of local production is becoming more important. High GDP growth and rising exports are positive signals, but economic sustainability will depend on how much local value the country can create.
Export growth alone is not enough because total exports may still be influenced by re-exports and a few major commodity groups. The 66.1% increase in local exports is an important signal, but their composition shows that Georgia still needs to move toward more diversified and higher-value exports.
The 36.0% growth in ICT and 18.0% growth in transport show that Georgia has two important economic pillars: digital services and regional connectivity. If these two directions are connected with local production and exports, a new economic model can emerge – one less dependent only on imports and more based on knowledge and services.
The main risk is that the country becomes satisfied with high growth and fails to see structural vulnerabilities: the trade deficit, import dependence, the large role of vehicles, commodity concentration in local exports and weaknesses in agriculture and construction.
Why this matters for Georgia
These data matter because they show the relationship between growth and local production. High economic growth gives Georgia an opportunity, but stronger local production determines how much of that growth remains inside the country.
If the economy grows but import dependence remains high, much of the growth may flow toward external producers and suppliers. If exports grow but remain concentrated in a few commodity groups, the country remains vulnerable to changes in global prices and demand. If local exports grow and gradually diversify, the economy moves onto a stronger foundation.
The main practical meaning of the 2026 data is that Georgia has a chance to begin a new stage of local production. This does not mean producing everything locally. It means choosing the areas where the country can realistically add value: processing, packaging, quality control, logistics services, technological support, local brands and export-ready products.
BTUAI assessment
BTUAI assesses that Georgia’s 2026 economic picture is a strong beginning, but the main question remains open: how will growth become local production and local value?
If the country looks only at GDP growth and export expansion, it may miss what matters most — the content of exports, the depth of production, import dependence and business productivity. If the country reads these data as a development strategy, it will see that the goal should not only be more trade, but more value.
Georgia’s right direction is to use strong growth to strengthen local production, processing, logistics services, ICT and export diversification. This means the future of the economy should not be only about importing and reselling more goods. It should be about more knowledge, more quality, more services and more local value.
The 2026 data give Georgia an opportunity to connect the next stage of economic growth with stronger local production. This is a shared task for the state, business, universities, the financial sector and professional education.
Data and evidence base
In Q1 2026, Georgia’s real GDP increased by 9.0%, while GDP at current prices reached GEL 24.77 billion. GDP per capita at current prices was GEL 6,286, or USD 2,329.
By sector, growth in information and communication reached 36.0%, transport and storage 18.0%, arts, entertainment and recreation 14.5%, healthcare and social services 12.6%, accommodation and food services 12.4%, and financial and insurance activities 11.7%. Agriculture declined by 3.3%, while construction declined by 2.0%.
In January-May 2026, external trade turnover was USD 10.44 billion. Exports amounted to USD 3.11 billion, imports to USD 7.33 billion, and the trade deficit to USD 4.22 billion. Exports grew by 19.8%, while imports declined by 1.9%.
Local exports reached USD 1.93 billion in January-May 2026, up 66.1% year-on-year. Their share in total exports rose to 62.1%, compared with 44.8% in the same period of 2025.
The largest local export product groups were petroleum and petroleum products at USD 352.2 million, precious-metal ores and concentrates at USD 255.6 million, ferroalloys at USD 130.8 million, copper ores and concentrates at USD 112.3 million, and natural grape wines at USD 92.3 million.
Article identification
Title: Georgia’s Economy in 2026: Strong Growth, Rising Exports and the New Question of Local Production
Platform: BTUAI.ge
Country: Georgia
Topic: Economic growth, exports, local production, local exports, trade deficit
Period: Q1 2026; January-May 2026
Languages: Georgian and English
Methodology
This article was prepared through an analytical reading of Georgia’s official 2026 economic data. It uses three main source blocks: Q1 2026 gross domestic product, January-May 2026 external merchandise trade and January-May 2026 local exports. The analysis examines the relationship between economic growth, rising exports and the opportunity to strengthen local production.
Limitations
This material is analytical and educational in nature. It does not constitute financial, investment, legal or tax advice. Before making a specific decision, consultation with a relevant specialist is recommended.
The data used are preliminary and may be revised. External trade data do not include undeclared or unorganized trade and commodity flows that are not covered by external trade statistics under international methodology.
Sources
National Statistics Office of Georgia – Gross Domestic Product of Georgia, Q1 2026.
National Statistics Office of Georgia – External Merchandise Trade of Georgia, January-May 2026.
National Statistics Office of Georgia – Local Exports of Georgia, January-May 2026.
BTUAI Research Team – analytical processing and interpretation in Georgia’s context.
FAQ
Why are the 2026 data important?
Because they show strong GDP growth, export expansion and a sharp increase in local exports at the same time.
What is the new question of local production?
It means that the key issue for Georgia is no longer only how much exports grew, but how much value was created inside the country.
Why is export growth alone not enough?
Because exports may grow through re-exports or a few commodity groups. Sustainable growth requires diversification and higher value added.
What is the main opportunity?
Connecting local export growth with processing, packaging, logistics services, ICT, quality standards and local brands.
What is the main risk?
The main risk is that the economy remains dependent on imports, vehicles, re-exports and a few raw-material categories.
Keywords
Georgia economy 2026; local production Georgia; local exports Georgia; export growth Georgia; GDP growth Georgia; trade deficit Georgia; local value creation; ICT Georgia; transport and logistics Georgia; BTUAI; Business and Technology University.
Citation format
BTUAI Research Team. “Georgia’s Economy in 2026: Strong Growth, Rising Exports and the New Question of Local Production.” Business and Technology University, BTUAI.ge, 2026.
Authorship and BTUAI standard footer
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.