Georgia's exports surge by 21.6%: Economy grows by 8.0% in July

Georgia’s exports of goods rose by 21.6% to $4.67 billion from January through July 2026. Imports grew by only 2.4% to $10.85 billion during the same period. This was reported by the Georgian National Statistics Office (Geostat) on August 31. Foreign trade turnover reached US$15.52 billion, an increase of 7.5%. The trade deficit thus amounts to US$6.18 billion.

The economy grew by 8.0% in real terms in July compared with the same month last year. For January through July, Geostat calculated an average growth rate of 7.9%. In June, the agency had recorded 8.6%. Geostat bases its flash estimate on the revenue of value-added tax payers as well as on fiscal and monetary statistics. This revenue reached 17.71 billion lari in July, 12.6% more than a year earlier.

The growth rate is higher than that of the previous year. For 2025, Geostat provisionally reports real growth of 7.5%, with a gross domestic product of $10,296.50 per capita. As of January 1, 2026, the population stood at approximately 3.94 million people. Georgia has thus been growing faster since the beginning of the year than it did last year.

Industry drives growth, while construction slumps

Geostat identifies the key drivers by name. Manufacturing, information and communication, financial and insurance services, mining, and transportation and warehousing contributed significantly to real growth in July. Regarding construction, the agency notes in a single sentence: “A decline was recorded in the construction sector.”

The momentum in business start-ups continues. In July, 7,027 new companies were registered, 14.1% more than in the same month last year.

Inflation is above target

Consumer prices in July were 5.5% higher than in the same month last year. Compared with June, they fell by 0.4%. Producer prices for industrial goods rose by 5.1% year-over-year and fell by 0.7% compared with June.

The National Bank of Georgia has kept its key interest rate at 8.25% since May 6. In its June 17 decision, the Monetary Policy Committee stated: “Economic activity remains strong.” Highly productive sectors drove growth, thereby alleviating some of the demand-side price pressure. The inflation target is 3%. For 2026, the central bank expects an average of 4.9%.

German suppliers are facing a market where purchasing is growing more slowly than the economy itself. Imports are rising by 2.4%, while economic output is growing by nearly 8%. Suppliers of construction equipment must factor in the shrinking construction sector. Opportunities lie in equipment for the manufacturing sector and for logistics, as both industries are driving growth. The key interest rate of 8.25% makes local financing more expensive. As a result, supplier credits and export credit guarantees are gaining importance.

Sources: Geostat, “Rapid Estimates of Economic Growth, July 2026,” August 31, 2026 (EN); National Bank of Georgia, Monetary Policy Committee Decision of June 17, 2026 (EN)

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