Geostat Revises 10 Years of Demographic Data: Georgia’s Population Increased by 5.6% to 3.93 Million in 2015–2025

According to the Minister, Georgia’s stable economic development, sustainable public debt, fiscal consolidation and improved reserve adequacy have strengthened international investor confidence. This was reflected in the successful issuance of $500 million in Eurobonds in January this year. Khutsishvili noted that a new international bond issuance serves both as an indicator of a country's risk level and as a measure of international investors' interest and confidence in its economy.“Significant progress was achieved on both fronts. First, the country's risk indicator declined by more than 50 basis points, representing an improvement of over 25%. At the same time, we saw record-high demand for Georgia's Eurobonds. Demand from more than 100 international investors exceeded the amount offered on the market by 5.5 times, meaning investors were prepared to invest up to $2.8 billion in Georgian securities. In terms of yield, this was the best result achieved globally over the past four years by a sovereign issuer without an investment-grade credit rating,” Khutsishvili said.The Minister also highlighted the Treasury securities issuance conducted in May, when the Ministry of Finance used the syndication method for the first time, issuing GEL 400 million worth of securities. He described this as an important step towards developing Georgia’s domestic capital market. Investor demand reached GEL 1.8 billion, exceeding the issued amount by 4.5 times.

1794408480

According to Khutsishvili, Georgia’s real economic growth forecast for 2027 is based on conservative assumptions and stands at 5%. Over the medium term, economic growth is projected at 5.2–5.3%. He noted that these forecasts are fully in line with projections by international financial institutions.Nominal Gross Domestic Product (GDP) is expected to grow by 8.9% in 2027, reaching GEL 126.4 billion. In subsequent years, nominal growth is projected to average 8.5%, with Georgia’s economy expected to exceed GEL 161 billion by 2030. GDP per capita is forecast to exceed $12,000 by the end of 2027 and $15,000 by 2030.Inflation is expected to follow a downward trend next year and approach its target level by the end of 2027.According to the Finance Minister, one of the major structural challenges facing Georgia’s economy – the current account deficit – has improved significantly in recent years. Last year, it stood at a historically low level of around 2.9% of GDP. The indicator is projected to improve further to 2.4% in the current year, while the current account deficit forecast for 2027 stands at 2.6%.The budget deficit is planned at 2.5% of GDP in 2027, with a slight downward trend in subsequent years, declining to 2.2%.Government debt is projected to remain at 31.1% of GDP throughout 2027–2030, which represents a safe level.Total consolidated budget revenues for 2027 are planned at GEL 38.363 billion, while consolidated budget expenditures are projected at GEL 38.243 billion.

1794408360

Additionally, a 20% supplement is provided for over 50,000 individuals in this category who reside in high-mountainous settlements;For 440,000 beneficiaries under the age of 70, the pension will increase by GEL 45, bringing it to GEL415. A 20% supplement is provided for 36,000 beneficiaries living in high-mountainous settlements;In line with indexation and pension increases, the social package for over 130,000 persons with disabilities is also being increased; an additional GEL81 million has been allocated for this purpose, bringing the total to GEL640 million;Funding for healthcare programs has increased by ₾244 million, exceeding GEL2.445 billion. This includes funding for the Universal Healthcare Program, which serves over 790,000 beneficiaries annually, amounting to 1.634 billion GEL. Within this allocation, provision is made for salary increases for emergency medical personnel, as well as for rural doctors and nurses;The budget for the Social Rehabilitation and Child Care Program has been increased by more than 34 million GEL, reaching a total of 159 million GEL;More than 147 million GEL has been allocated for supplements designated for residents of high-mountainous settlements. In total, over 175,000 beneficiaries receive various forms of these supplements;Funding for the co-financing of the funded pension scheme will increase by 60 million GEL next year. In 2027, the state budget contribution for 850,000 beneficiaries will amount to 600 million GEL.

1794408360

More than 300 million GEL allocated for salary increases for over 75,000 individuals employed in the defense and security sectors; Over 150 million GEL for salary increases for nearly 60,000 public school teachers; 60 million GEL for salary increases for over 40,000 kindergarten staff members; More than 40 million GEL for salary increases for approximately 35,000 individuals employed in the fields of culture and sports; Over 15 million GEL for salary increases for emergency medical personnel, as well as rural doctors and nurses, totaling more than 7,000 individuals; Up to 250 million GEL in total for salary increases for individuals employed in other state agencies and municipal services.

1794408180

Minister of Finance Lasha Khutsishvili announced this while presenting the draft 2027 state budget to Parliament.According to the draft budget, funding for the Ministry of Education and Science will increase by more than 298 million GEL compared to the current year, surpassing 3 billion GEL. Furthermore, taking into account the funding for educational infrastructure and student transportation, a total of 3.71 billion GEL will be allocated to programs in the fields of education, science, and youth.Of the total allocations for the Ministry of Education, more than 1.95 billion GEL will be directed toward school funding. Over 560,000 students receive school education services. Funding for schools is set to increase by more than 190 million GEL compared to the current year, which will allow for salary increases for over 70,000 teachers and administrative staff.Additionally, starting in September of next year, the supplement for more than 30,000 homeroom teachers in public schools is set to be doubled. Funding for other general education programs amounts to 284 million GEL.For vocational education, including planned construction and rehabilitation works - 263 million GEL has been allocated, which will provide 45,000 citizens with the opportunity to pursue vocational education. Funding for higher education is set at 267 million GEL, of which 105 million GEL will be allocated to the tuition-free program at state universities. This year, more than 20,000 students enrolled in their first year under this program. Funding for science amounts to 97 million GEL, while programs to support youth account for over 26 million GEL. As part of the latter, the construction of new youth camps will begin in Tskhvarichamia and Bakhmaro.Regarding funding for the healthcare and social sectors, the 2027 budget allocates more than 10 billion 907 million GEL to the Ministry, an increase of over 1 billion 238 million GEL compared to the current year's figure.Of this amount, 5 billion 700 million GEL will be directed toward pension provision, which is 685 million GEL more than the funding allocated for the current year. 1.994 billion GEL is allocated for various social programs, while funding for healthcare programs exceeds 2.462 billion GEL—an increase of 243 million GEL.145 million GEL is earmarked for the rehabilitation and equipping of medical facilities, which is 65 million GEL more than the figure for the current year. Next year, the construction of a hospital for the Center for Mental Health and Prevention of Drug Addiction will commence under this program. Furthermore, over 418 million GEL is allocated to support internally displaced persons (IDPs) and migrants.Capital Expenditures – Over 8.4 Billion GELMore than 8.4 billion GEL from the 2027 consolidated budget will be directed toward capital expenditures. The primary areas of funding include:Municipal infrastructure – over 2.8 billion GEL;Road infrastructure – over 1.38 billion GEL, including 773 million GEL for the construction of high-speed highways; Educational infrastructure – 830 million GEL;Water supply and sanitation – 350 million GEL. Additionally, 280 million GEL will be allocated to the United Water Supply Company this year, with the corresponding works to be carried out in 2027;Energy infrastructure – 230 million GEL, including for the construction of energy storage facilities. An additional 55 million GEL will be allocated this year to resume gasification efforts in the regions;Sports infrastructure – 310 million GEL;Tourism infrastructure – 100 million GEL. More than 80 million GEL will be allocated this year to fund development works for mountain resorts scheduled for 2027;Resettlement of internally displaced persons (IDPs) and migrants – 408 million GEL, an increase of 140 million GEL compared to the previous draft budget;Healthcare infrastructure – 140 million GEL;Land reclamation (irrigation and drainage) systems – 85 million GEL. Additionally, 70 million GEL will be allocated in 2026 for projects to be carried out in the following year;Solid waste management projects – over 110 million GEL;Police, state security, and defense – 882 million GEL;Increasing the capacity of Georgian Railways – 250 million GEL;Modernization of the Tbilisi Metro – 125 million GEL;Bringing internet access to villages – 107 million GEL for the construction of a fiber-optic network;Other capital expenditures – 303 million GEL.According to the Minister, additional funding has also been earmarked for a new government initiative aimed at providing housing for internally displaced persons (IDPs). Specifically, more than 100 million GEL will be directed toward this effort in the current year, while over 16,000 families are set to receive compensation between 2026 and 2027.Furthermore, to cover the work to be carried out in 2027 as part of the construction of the Anaklia Port an additional 125 million GEL will be allocated for financing this year.

1794407940

Of this total, 618.2 thousand trips abroad were made by Georgian resident visitors, representing a 3.1% increase over the figure for the corresponding period in 2025.Georgian resident visitors undertook 428.3 thousand "tourist-type" trips abroad, an increase of 3.8% compared to the same period of the previous year.The majority of these trips (45.3%) were made by Georgian resident visitors aged 31–50, while women accounted for 46.9% of the total number of trips. In Q3 2026, the largest share of visits (35.7%) was made for the purpose of visiting friends or relatives.According to Geostat data, the majority of visits were to Turkey and the Russian Federation, amounting to 204.6 thousand and 112 thousand visits, respectively.The average number of nights spent during visits in Q3 2026 was 7.80, which is 1.3% lower than the figure recorded in Q3 2025 (7.90 nights). 97.3% of the visits were repeat visits.Expenditures incurred during visits in Q3 2026 totaled ₾835.2 million, an increase of 19.3% compared to the same period of the previous year. The average expenditure per visit rose by 15.8% compared to Q3 2025, reaching 1,351.0 GEL.

1794310918

From January through October, the portfolios recorded the following returns: Conservative Portfolio: 8.60% (real return: 2.85%) Balanced Portfolio: 8.11% (real return: 2.38%) Dynamic Portfolio: 7.41% (real return: 1.72%) October brought mixed monthly results as concerns over the financing of AI investment weighed on international equity markets. Domestic fixed-income instruments contributed positively, while the Georgian lari’s 0.23% appreciation against the US dollar reduced returns on foreign currency-denominated assets.Consequently, the Conservative portfolio led October performance with a 0.14% gain. The Balanced and Dynamic portfolios, with higher allocations to international equities, declined by 0.59% and 1.34%, respectively.Despite the weak result in October, the Dynamic portfolio continues to lead in since-inception annualized return with nominal 12.86% (real annualized return: 8.42%), compared with 12.21% (real: 7.80%) for the Balanced portfolio and 10.16% (real: 4.25%) for the Conservative portfolio.As of the end of October, total assets of the Pension Fund of Georgia exceeded GEL 10.2 billion, with cumulative investment returns approaching GEL 3.0 billion.The number of participants enrolled in the pension scheme is 1 million 787 thousand people.As of October 31, 2026, 38,186 people benefited from the accumulative pension, and 201,645,743.53 GEL was issued to them as pensions.

1794309980

During the meeting, the parties discussed Georgia's economic development trends, inflation dynamics, monetary policy, the state of the external sector, and financial sector stability. Particular attention was paid to the global economic environment and the impact of geopolitical developments on the Georgian economy.Natia Turnava briefed the mission members on the country's macroeconomic situation and key economic indicators. She highlighted the growth in international reserves, which have reached a historic high of USD 8.25 billion. The positive dynamics in the external sector were also discussed. In 2025, the current account deficit declined to a historic low of 2.9% of GDP, while in the first half of 2026, according to preliminary data, it stood at 2.5% of GDP.Natia Turnava also discussed the latest inflation trends. She noted that annual inflation stood at 5.9% in October 2026. The increase in inflation is primarily driven by geopolitical factors, particularly higher energy prices, which continue to make a significant contribution to inflation. The NBG maintains a tight monetary policy stance and stands ready to take appropriate action, if necessary, in light of inflationary risks.As part of the IMF mission, the macroeconomic situation in Georgia, the country's fiscal and monetary policies, and its economic development prospects will be assessed.The meeting with the IMF delegation was also attended by Vice Governors of the National Bank of Georgia Ekaterine Mikabadze and Nino Jeladze, Executive Director Beka Dotchviri, IMF Resident Representative in Georgia Andrew Jewell and heads of departments of the NBG.

1794309804