Georgia’s economic growth is expected to slow to 5.5 percent in 2026, down from 7.5 percent a year earlier, amid a cooling services sector and weaker external demand, the Asian Development Bank said on Friday.

The forecast, outlined in the April 2026 edition of the Asian Development Outlook, also points to further moderation, with growth projected at 5.2 percent in 2027, The Caspian Post reports, citing Xinhua.

The Manila-based institution cautioned that rising geopolitical risks, including tensions in the Middle East, could negatively impact overall economic activity.

The services sector, the primary driver of Georgia’s economy, is expected to expand by 7.5 percent in 2026 and 6.8 percent in 2027, easing from 10.8 percent recorded last year. Meanwhile, the industrial sector is forecast to improve, growing to 2.4 percent in 2026 from 1.4 percent, supported by gains in construction and manufacturing, before slightly declining to 2.0 percent in 2027.

Agriculture, which saw a contraction of 6.1 percent in 2025, is anticipated to stabilize in 2026 and recover to a growth rate of 1.7 percent in 2027.