GeorgiaChapitres
Georgia has an economy that benefits from a strategic location between Europe and Asia, making it an attractive hub for trade and investment. The economy has strong agricultural and tourism sectors, with growing foreign investment in infrastructure, real estate and energy. Georgia is also increasingly reliant on the services sector, particularly in areas such as finance, construction and transport. Despite these opportunities, the economy faces challenges such as high political risks, inflationary pressures, and reliance on external financing. The current account deficit remains a concern, and Georgia is vulnerable to regional geopolitical tensions, particularly in relation to Russia. However, the government’s focus on structural reforms and integration with global markets is expected to support steady economic growth in the coming years.
Source: Coface
Indicateurs clés
- Surface
- 69,700 sq km
- Population
- 3,699,557 (2024)
- Type de gouvernement
- semi-presidential republic
- Langues
- Georgian (official) 87.6%, Azeri 6.2%, Armenian 3.9%, Russian 1.2%, other 1%; note - Abkhaz is the official language in Abkhazia
- PIB
- $34.19 billion (2024)
- Taux de croissance
- 9.7% (2024)
- HDI
- 57
- Capitale
- Tbilisi
Indicateurs macroéconomiques
Economic activity expanded by 8.3% (yoy) in the first half of 2025, driven by consumption. Domestic consumption was supported by rising real wages (+7.8% (yoy) in Q1) and strong credit growth (+14.6% (yoy) in real terms). On the supply side, ICT, trade, and construction were the main contributors to growth.
Annual Inflation accelerated to 4.8% in August, mainly due to higher food prices. The National Bank of Georgia has maintained its policy rate at 8% since May 2024, reflecting a cautious approach amid rising inflation and strong domestic demand.
Financial sector indicators remain sound. Non-performing loans remained broadly stable (NPLs) at 2.5%, return on equity was 22%, and return on assets reached 3.7%.
The current account deficit widened to 8.6% of GDP in Q1 2025, reflecting weaker exports of goods and lower remittances, partly offset by strong service exports. In H1, goods exports grew by 13.7% (yoy), driven by re-exports. Remittances increased by 3.6% (yoy), while tourism receipts grew by 3.8% (yoy). FDI inflows remained subdued at 2% of GDP in Q1. The lari appreciated by 0.5 % (yoy) against the USD by end-July, while reserves increased by 7.5% (yoy), reaching 3.2 months of imports.
The fiscal performance remained solid, with a deficit of 0.2% of GDP in H1 2025. Revenues rose by 9% (yoy), driven by strong economic activity and improved compliance. Current spending increased by 13.4% due to significant rises in wages, social programs, and subsidies, while capital outlays fell by 13% due to project execution delays. Public debt declined to 34 % of GDP at end-June.
In 2024, robust economic growth (9.4%) was accompanied by an estimated 3.4 percentage points reduction in poverty at the USD 8.3 line (2021 PPP), supported by higher employment and wage growth. Growth is projected to reach 7% in 2025, prior to easing to 5% in the medium term, as consumption growth normalizes. Poverty is expected to continue to decline.
Source: World Bank
IMF Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
2.488 |
1.11 |
3.92 |
3.398 |
3.0 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
-5.551 |
-4.416 |
-4.53 |
-4.55 |
-4.697 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
-1.709 |
-1.491 |
-1.695 |
-1.828 |
-1.992 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
12.36 |
6.359 |
3.388 |
11.18 |
11.608 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
7.832 |
9.429 |
7.228 |
5.256 |
5.039 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
8237.416 |
9141.846 |
10125.977 |
10886.113 |
11500.23 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
30.778 |
33.775 |
37.403 |
40.177 |
42.408 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
10.834 |
5.894 |
4.608 |
5.359 |
4.468 |
|
Unemployment rate |
16.4 |
13.9 |
13.9 |
13.9 |
13.9 |
Estimates
Source: IMF Statistics - Georgia
Le Luxembourg et le pays
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 15.10.2007 (Memorial 2009, A No.228, p.3949)
- Effective as of 01.01.2010 (Memorial 2009, A No.228, p.3949)
Air Services agreement
Informations supplémentaires
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact point in Georgia
Embassy of Grand Duchy of Luxembourg in Georgia
Ambassador with residence in Luxembourg: Mr. Alain de MUYSER
9, rue du Palais de Justice
L- 1841 Luxembourg
Tél.: 247-88370
Country risk as defined by Office du Ducroire for Georgia
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office – Country Risk for Georgia