The article discusses the recent economic developments in Georgia, a country located at the crossroads of Europe and Asia. Here are the key points:
* The National Bank of Georgia (NBG) has reported an improvement in foreign exchange reserves, which have reached their highest level since the first quarter of 2022.
* Remittances from the EU countries have been particularly notable, accounting for an average of 46% of money transfers to Georgia throughout 2025. The US was the next strongest source of remittances, making up 19% of transfers in recent months.
* The Georgian economy is heavily dependent on remittances, which accounted for 11.8% of GDP in 2024.
* External trade trends have also contributed to the improvement in net inflows, with strong exports and muted growth in imports.
* Tourism-related inflows have also been growing, with international visitor trips increasing by 4.6% year-over-year in the first half of 2025, reaching 2.81 million.
* The inflation rate has remained relatively low, amounting to 4% year-on-year in June, largely driven by growing food prices.
* Non-cash spending by Russians, Belarusians, and Ukrainians who settled in Georgia following Russia’s invasion of Ukraine has been flat or slightly declined.
Overall, the article suggests that Georgia’s economy is showing signs of resilience, with improvements in foreign exchange reserves, remittances, and external trade trends. However, the country still faces challenges related to inflation and non-cash spending by migrant groups.
