World Bank forecasts Georgia’s economy to grow 5.5% in 2026, leading region

According to the World Bank’s latest report - Global Economic Prospects 2026 - Georgia is expected to record the highest economic growth in the South Caucasus region this year, with a projected increase of 5.5% - up 0.5 percentage points from the June 2025 forecast.

The report highlighted that the global economy has demonstrated greater resilience than initially anticipated, despite ongoing regional and international challenges.

Regional growth projections for 2026 are as follows: Georgia: 5.5%; Armenia: 4.9%; Azerbaijan: 1.8%.

The World Bank noted that overall growth in the South Caucasus was expected to slow, reaching 3.3% in 2026 and 3.1% in 2027.

In Georgia and Armenia, private consumption was expected to moderate as economic activity normalised from a high base, while weaker remittances and declining export revenues may put pressure on current account balances.

The preliminary peace agreement between Armenia and Azerbaijan reached in August 2025 was expected to enhance regional stability and support deeper economic integration.

Elsewhere in Eastern Europe, the World Bank projects: Moldova: 2.7% (a +0.3 percentage point revision from June 2025); Ukraine: 2.0% (a –3.2 percentage point revision from June 2025).