The World Bank has revised its forecast for Georgia: in 2026, GDP growth is expected at 5%, which is 0.4 percentage points below the previous estimate. At the same time, the forecast for 2027 has been improved to 5.5%, indicating a possible gradual recovery in momentum after the slowdown.
The report on the Europe and Central Asia region notes that overall growth in 2026 will decline to 2.1% amid geopolitical instability, rising energy costs, and problems in global trade. Against this backdrop, the South Caucasus looks more resilient: in Armenia the forecast has been raised to 5.3%, and in Azerbaijan to 2%.
The bank’s economists emphasize that despite external risks, Georgia and Armenia are maintaining higher growth rates thanks to domestic demand, construction, and re-exports. In Azerbaijan, growth remains weaker due to declining oil production and tight fiscal policy, while the region as a whole remains sensitive to any external shocks.