IMF Raises Georgia’s Economic Growth Forecast: What Opportunities and Challenges Lie Ahead in 2025

The International Monetary Fund (IMF) has released a particularly optimistic forecast for Georgia’s economic outlook — raising its 2025 growth projection from 6% to 7.2%. The head of the IMF mission, Alejandro Hajdenberg, announced this decision during a briefing at the National Bank, noting that Georgia’s macroeconomic environment demonstrates remarkable resilience, further strengthening the country’s position within the region.

According to the IMF, this sharp upward revision reflects both the stability of global markets and the effectiveness of domestic economic policies. A 7.2% growth rate positions Georgia as one of the fastest-growing economies in Eastern Europe and the Caucasus, with a direct impact on employment levels, investment attraction, and social stability.

The Fund also emphasized the country’s ability to maintain macroeconomic stability through effective inflation control. While food prices have increased recently, core inflation remains below the 3% target, and overall price levels are within the desired range. This demonstrates the success of Georgia’s monetary policy and supports greater purchasing power stability for the population.

Improvement has also been observed in the current account deficit: after standing at 4% last year, it is expected to remain at a similar level in 2025. Of particular importance to the IMF is the growth of Georgia’s international reserves — the National Bank has significantly strengthened its reserves in recent months, enhancing the country’s financial system’s resilience against external shocks.

Such a positive outlook from the IMF not only boosts Georgia’s economic forecast but also contributes to greater investor confidence and renewed attention from international credit rating agencies. However, alongside these encouraging trends, key challenges remain — including the need for continued structural reforms, greater labor market flexibility, and economic diversification. Only by addressing these areas can Georgia sustain its positive macroeconomic trajectory and fully unlock its long-term growth potential.