At a meeting of the Economic Policy Committee, First Deputy Finance Minister Giorgi Kakauridze presented the Annual Report on the Execution of the 2025 State Budget of Georgia.

According to him, real economic growth had been projected at 5% for the previous fiscal year; however, Georgia concluded 2025 with economic growth of 7.5%.

Giorgi Kakauridze noted that the private sector made a significant contribution to economic growth, as reflected in increased employment figures. In 2025, the number of employed persons was 27,300 higher than in 2024.

The First Deputy Minister also spoke about revenues generated from the external sector, providing detailed information on income derived from foreign trade, tourism, remittances, and foreign direct investment.

He presented to the Committee the key fiscal parameters of the country’s main financial document, as well as data on the revenue and expenditure components of both the consolidated and state budgets.

Kakauridze also outlined budget execution rates across government institutions, noting that in 2025, the IDPs, Labour, Health and Social Affairs Ministry executed its budget at 100.3%; the Regional Development and Infrastructure Ministry at 101%; Defence and Internal Affairs Ministries at 100%; Education, Science and Youth Ministry at 96.6%.

Committee Chair Shota Berekashvili thanked the First Deputy Minister for the information presented and commented on several aspects of last year’s financial performance.

“The real economy grew by 7.5%, meaning that Georgia is among the leading countries in Europe in terms of economic growth. It is also important that the budget deficit, which had been planned at 2.5%, amounted to only 1.5%. This indicates rapid economic growth. Notably, external debt has declined and now stands at 35.4% of GDP. Georgia maintains a sound and prudent fiscal policy and can readily attract additional financial resources if necessary. At a time when global inflationary pressures remain significantly high, an inflation rate of 3.9% is close to the National Bank’s target. It is important that the country continues its economic development, and economic growth in 2026 is expected to exceed current forecasts. Alongside economic growth, citizens’ incomes are increasing, and under these conditions of development, Georgia will soon join the ranks of high-income countries”, - Shota Berekashvili stated.

The Committee took note of the report.