The Executive Board of the International Monetary Fund (IMF) has concluded the Article IV consultation report on the Georgian economy. According to the IMF’s assessment, despite global challenges, Georgia’s macroeconomic conditions and economic growth remain robust, supported by strong macroeconomic management and economic policies, the National Bank of Georgia reported.

Furthermore, the International Monetary Fund notes that the primary policy priorities are maintaining inflation at the target level, strengthening international reserves, and continuing structural reforms.

As highlighted in the report, real economic growth in 2025 stood at 7.5%, significantly exceeding the pre-pandemic trend for the fifth consecutive year. According to the IMF, macroeconomic policies were broadly in line with the Fund’s recommendations.

Additionally, the IMF projects the Georgian economy to grow by 6.5% in 2026, alongside a gradual reduction in inflation. It is noteworthy that in April, the IMF’s projected economic growth for Georgia in 2026 was 5.3%.

“The increase in the monetary policy rate in May was appropriate. If inflationary pressures prove to be more prolonged, the National Bank of Georgia (NBG) should maintain its readiness for further tightening. Inflation will peak in mid-2026, primarily driven by rising energy prices. Thereafter, inflation will gradually return to the 3-percent target level,” states the International Monetary Fund’s report.

According to the IMF’s assessment, Georgia’s external position in 2025 was stronger than the level implied by medium-term fundamentals and appropriate economic policies.

The report indicates that real GDP grew by 7.5% in 2025, and robust growth was sustained into early 2026. Meanwhile, inflation exceeded the target due to rising energy prices, reaching 5.9% in April 2026. Fiscal and external buffers were strengthened. The current account deficit declined to a historical low of 2.6% of GDP, international reserves reached the adequacy threshold defined by the IMF, and public debt fell below 35% of GDP.

“Against the backdrop of a reduced current account deficit and increased international reserves, the external sector position has strengthened. In 2025, the current account deficit narrowed to a historic low of 2.6 percent of GDP, predominantly driven by the robust growth in service exports (particularly ICT and tourism) and modest growth in goods imports amid low oil prices. At the end of April 2026, international foreign exchange reserves amounted to USD 6.4 billion, which corresponds to 102% of the IMF’s Assessing Reserve Adequacy (ARA) metric. This outcome reflects net foreign exchange purchases of over USD 3 billion by the National Bank of Georgia in previous years, facilitated by the de-dollarization process and financial inflows, as well as valuation gains derived from higher gold prices,” notes the International Monetary Fund.

The report also underscores that Georgia’s banking sector is sound. Banks are well-capitalized, liquid, and profitable, while the ratio of non-performing loans remains at a low level.

“Prudent macroeconomic management and macroprudential policies have facilitated the further de-dollarization of the economy. Additionally, deposit dollarization has decreased, driven by improved market confidence and the weakening of the US dollar,” states the report prepared by the IMF’s Executive Board.

Furthermore, the International Monetary Fund positively evaluates the steps taken toward improving the governance of the NBG, which were implemented in accordance with the IMF’s Technical Assistance (TA) recommendations.

According to the IMF’s assessment, notable steps taken regarding NBG governance include the redistribution of responsibilities among executive members and the strengthening of the regulatory framework for replacing the Governor of the National Bank of Georgia.

“Most of the recommendations from the 2022 Safeguards Assessment have already been implemented, including the recent elimination of the possibility to make discretionary transfers to the government,” the IMF Executive Board’s report states.

The IMF notes that additional reforms are necessary to achieve closer alignment with international best practices. According to the Fund’s assessment, transitioning to a collegial decision-making model will enhance the quality of decisions through collective deliberation.