Georgia's Economy Grows 6.3% in August: Exports Rise 24.7%

Georgia’s real economic output grew by 6.3% in August compared with the same month last year, according to a report released by the National Statistics Office (Geostat) on September 30. In July, the growth rate was 8.0%. From January through August, the average growth rate was 7.6%.

Manufacturing and Information Technology Drive Growth

In August, manufacturing, information technology, financial services, real estate, trade, and transportation drove economic activity. The construction sector contracted. According to Geostat, the economy grew by 7.8% in the first half of the year, down from 8.6% in the previous year.

Information technology accounted for just under 29% of the half-year growth, more than twice as much as the next-largest sector. This is shown by an analysis by Georgia Today on September 24. Agriculture and construction weighed on the overall figures.

On September 24, TBC Capital wrote about exports: “Activities related to merchandise exports significantly increased economic output.” This quote, therefore, predates the August data.

Exports Drive Growth, Remittances Plunge

Georgia’s exports rose by 24.7% in August and by 22.1% from January through August. Petroleum products accounted for 14.2 percentage points of this growth, representing more than 64% of the increase. Five commodity groups accounted for approximately $1 billion in additional exports: petroleum products, gold, ferroalloys, copper ores, and nitrogen fertilizers. Excluding these and vehicles, exports grew by 15.5%.

Imports rose by 8.0% from January through August, adjusted for a one-time effect from January 2025. Vehicle imports fell by 12.5%. According to TBC Capital, the trade deficit amounts to 26.4% of economic output.

The picture is different when it comes to remittances from abroad. Instant transfers fell by 8.2% in August. Remittances from Russia were down 88% from July, totaling just $5.1 million. The EU had previously imposed sanctions on the Zolotaya Korona payment system.

What this means for German exporters and investors

Georgia continues to import more, except for vehicles. The country remains a market for machinery, equipment, and consumer goods, and demand—excluding oil and vehicles—is growing by 8.3%. TBC Capital cites this figure. Car dealers should keep an eye on the higher excise tax on cars over six years.

Investors should factor in the high trade deficit and weaker remittances. According to TBC Capital, Georgia Today expects a stronger current account balance in the third quarter. Geostat’s September data will show whether growth holds steady at 6%.

Sources: Geostat, preliminary GDP estimate for August 2026 (EN); Georgia Today with TBC Capital, September 24, 2026 (EN); SOVA, September 30, 2026 (EN)

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