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Georgia’s economy to slow but stay strong; business confidence hit by political turmoil

Georgia’s economy faces a slowdown in growth with business confidence weakened by political turmoil.

Georgia’s economy is expected to decelerate after a year of exceptionally strong growth, but is projected to maintain a solid pace of expansion at 5-6% in 2025 and 2026. The slowdown is attributed to robust domestic demand, the country’s strategic position amid geopolitical shifts driven by Russia’s war in Ukraine, and the reallocation of services and trade routes away from Russia. However, business confidence has weakened significantly in early 2025 due to escalating political tensions, which increases economic risk and uncertainty. The report warns of unusually high uncertainty stemming from domestic political developments and regional geopolitical tensions, which may negatively impact business sentiment and consumer confidence despite the positive outlook on growth.
Status
active
Location
Georgia
Date added
2026-03-24 14:25 UTC
Last updated
2026-03-24 14:25 UTC
Source
https://www.civil.ge
Connected threats
  • Not Available

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