The World Bank has published its new report, Global Economic Prospects 2026, according to which Georgia’s economy is expected to grow by 5.5 percent in 2026. This forecast is 0.5 percentage points higher than the World Bank’s June 2025 projection. In 2027, Georgia’s gross domestic product is expected to grow by 5.0 percent.

According to the report, economic growth forecasts for the region in 2026 are as follows: Georgia – 5.5%; Armenia – 4.9%; Azerbaijan – 1.8%; Turkey – 3.7%; Ukraine – 2.0%; Russia – 0.8%; and Kazakhstan – 4.5%.

The World Bank also notes that economic growth in the South Caucasus region is expected to slow to 3.3 percent in 2026 and 3.1 percent in 2027.

“In the South Caucasus, growth is envisaged to slow to 3.3 percent in 2026 and 3.1 percent in 2027. In Azerbaijan, activity is expected to be constrained by weaker hydrocarbon output, lower global oil prices, and a tighter fiscal stance. In Armenia and Georgia, private consumption is anticipated to moderate as activity normalizes from a high base, while weaker remittances and lower export earnings are projected to weigh on current accounts. The preliminary August 2025 peace agreement between Armenia and Azerbaijan is expected to strengthen stability and deepen integration,” the report states.