Georgia Economy Strengthens as Trade with Russia and Tourism Revenues Grow

Georgia’s economy demonstrated steady growth across two key
sectors in the first half of 2026 — foreign trade and tourism. According to the
National Statistics Office of Georgia (Geostat), trade turnover with Russia
exceeded $1.5 billion between
January and June, marking an 18.9%
increase compared to the same period last year. At the same time,
revenues from international tourism continued to rise. Visitors from Azerbaijan
alone contributed $107.6 million
to Georgia’s economy, up 4.9%
year-on-year, while total tourism revenues reached $1.93 billion during the first six
months of the year.
Russia remains one of Georgia’s largest trading partners
despite ongoing political differences between the two countries. The continued
expansion of bilateral trade reflects the high degree of economic
interdependence that has developed in recent years. Georgian exports to Russia
continue to consist primarily of wine, mineral water, ferroalloys, fruits,
vegetables, and other agricultural products, while Russia’s main exports to
Georgia include petroleum products, natural gas, grain, metals, and industrial
raw materials.
At the same time, tourism remains one of the main drivers of
Georgia’s economic growth. Azerbaijan continues to rank among the country's
largest sources of inbound visitors, alongside Turkiye, Russia, and Armenia.
The increase in revenues generated by Azerbaijani tourists is attributed not
only to higher visitor numbers but also to increased average spending per
traveler. Well-developed transport links, a visa-free travel regime, and close
economic ties between the two neighboring countries continue to support this
positive trend.
The Georgian government expects the positive momentum to
continue during the second half of the year, driven by the peak summer tourism
season, expanding air connectivity, and increasing visitor flows from
neighboring countries and the Middle East. The country's National Tourism
Administration has previously noted that, following a record-breaking 2025,
Georgia is continuing to diversify its inbound tourism market by attracting
more visitors from the European Union, the Gulf states, and Central Asia,
thereby reducing its reliance on individual source markets.
According to analysts, the latest
economic indicators highlight a dual trend in Georgia’s economic development.
On the one hand, expanding trade with Russia provides additional support to
exports, logistics, and domestic economic activity. On the other hand, Tbilisi
continues to pursue closer economic cooperation with the European Union, the
countries of the South Caucasus, and Central Asia in an effort to reduce the
risks associated with excessive dependence on a single external partner.
Against this backdrop, the combination of expanding foreign trade, resilient
tourism, and Georgia’s strategic role as a regional transit hub continues to
underpin the country’s strong economic performance despite persistent
geopolitical tensions in the wider region.
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21 Jul 2026


