BAKU, Azerbaijan, August 2. Georgia’s economy expanded by 7.9% in real terms in January–June 2026, supported by stronger activity in manufacturing, transport, construction, information and communication, and financial services, while merchandise exports recorded double-digit growth.
Data from the National Statistics Office of Georgia reveals that country’s estimated real GDP growth reached 8.6% year-on-year in June 2026. "The estimated real Gross Domestic Product (GDP) growth rate amounted to 8.6% for June 2026 compared to previous year and the average real GDP growth for January - June 2026 equaled 7.9%," the statement of the office says. According to the data, the main contributors to monthly growth were manufacturing, transportation and storage, construction, information and communication, and financial and insurance activities. At the same time, declines were recorded in mining and quarrying, as well as in the energy sector.
External trade indicators also showed positive momentum. Georgia’s exports of goods increased 20% year-on-year in January–June 2026 to $3.88 billion, while imports grew only 0.7% to $9.05 billion. Total merchandise trade turnover reached $12.93 billion, up 5.8% compared with the same period of 2025.
Business activity remained strong during the period. The number of newly registered enterprises reached 7,049 in June 2026, increasing 13.7% year-on-year. Turnover of VAT-paying businesses used in the rapid GDP estimate reached 16.71 billion lari, up 14% compared with June 2025.
Consumer price growth remained moderate. The consumer price index increased 5.8% year-on-year in June, while producer prices for industrial products rose 5.9% over the same period. On a monthly basis, consumer prices increased by 0.1%, while industrial producer prices declined by 0.8%.
Trend’s analysis shows that Georgia’s H1 2026 growth pattern suggests that economic expansion is increasingly supported by a combination of export activity, transport services and investment-related sectors rather than by domestic consumption alone.
The strongest signal comes from the divergence between exports and imports. Export growth of 20% compared with import growth of only 0.7% indicates a significant improvement in external trade dynamics. Trend’s calculations show that Georgia’s trade turnover increased by approximately $710 million year-on-year in H1 2026, while the trade deficit narrowed as export revenues expanded faster than import demand.
The transport sector’s contribution is particularly significant given Georgia’s role as a transit hub between Europe and Asia. Higher activity in transportation and storage coincides with record first-half cargo volumes reported by Georgian ports and railways, reflecting the continued development of the Trans-Caspian International Transport Route (TITR, or Middle Corridor). The combination of growing transit flows and stronger domestic exports is increasing the importance of logistics as a component of Georgia’s economic growth model.
Manufacturing growth also played a key role in the first half of the year. The sector’s expansion, together with higher exports, suggests that industrial activity is contributing more actively to economic performance. However, the decline in mining and energy indicates that growth remains uneven across sectors and that some traditional areas of the economy continue to face pressure.
The increase in VAT-paying business turnover by 14% and the rise in newly registered enterprises point to continued private sector activity. At the same time, the relatively moderate growth in imports suggests that business expansion has not translated into a comparable increase in import demand, which may reflect stronger use of domestic capacity or a shift toward higher-value-added activity.
In Trend’s assessment, Georgia’s main economic priority will be maintaining this balance between growth drivers. Continued investment in transport infrastructure, industrial capacity and digital sectors will be important for sustaining momentum, while export diversification will remain a key factor in reducing reliance on external demand in individual sectors.
