In the 2027 budget, capital expenditures exceed 8.4 billion GEL, while funding for the Ministry of Health exceeds 10.9 billion GEL

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.

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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.

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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.

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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.

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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.

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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.

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She explained that the rate of deposit "larization" is improving rapidly, showing an increase of 8.3 percentage points compared to December 2024, a clear reflection of the heightened confidence in the Lari.Natia Turnava noted that the National Bank continues to actively implement measures to promote larization, which serve to strengthen the monetary policy transmission mechanism and reduce the financial system's vulnerability to exchange rate risks. This trend toward de-dollarization is also reflected in the credit portfolio. As of September 2026, 58.5% of the total credit portfolio is denominated in the national currency, a result of measures implemented to promote "larization" (dedollarization).Furthermore, according to the Governor of the National Bank, the exchange rate remains stable. As of September, the real effective exchange rate had appreciated by 4% year-on-year, driven largely by the appreciation of the nominal effective exchange rate.In the view of Natia Turnava, amid heightened global inflationary pressures and geopolitical shocks, the appreciation of the exchange rate helps to mitigate pressure stemming from imported inflation.

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According to her, the National Bank’s updated central scenario, assuming all other conditions remain constant, indicates that inflation will begin to decline next year, approaching the 3% target from the second half of 2027 onwards.Natia Turnava noted that the expected trajectory of inflation will depend significantly on global developments, particularly the prices of energy resources on international markets. Accordingly, the forecast is based on the assumption that the situation in the Middle East will stabilize and that the inflationary pressure stemming from the conflict will gradually dissipate. At the same time, the Governor of the National Bank noted that uncertainty in this regard remains high and inflationary risks persist.The Governor of the National Bank stated that if the impact of external shocks affects inflationary expectations and the risk of "second-round effects" intensifies, the National Bank is prepared to further tighten its monetary policy. "Our goal is for inflation to return rapidly to the target level once the impact of external shocks has subsided," noted Natia Turnava.She further explained that once a clear trend emerges for inflation to return to its target level, the National Bank will have the opportunity to gradually reduce the monetary policy rate, bringing it down to a neutral level.

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