Georgia’s economy expanded by 9.1% in the first quarter of 2026 compared to the same period last year, followed by 10.7% year-on-year growth in March alone, according to preliminary data from the National Statistics Office (Sakstat).

Inflation accelerated in March, reaching 3.7% in the consumer sector and 5% at producer level. VAT-paying companies recorded turnover of 15.6 billion lari ($5.77 billion) in March, up 13.4% year-on-year, News.Az reports, citing Georgian media.

Growth was driven mainly by manufacturing, information technology, construction, transport and storage, and professional and scientific services, with additional support from mining and parts of production chains.

However, declines were recorded in hospitality and food services, as well as in administrative and support services, making tourism-related industries the only major sector to contract.

Separate Sakstat data points to growing pressure in the tourism sector. In the first quarter of 2026, foreign visitors spent 2.2 billion lari ($814 million) in Georgia, down 5.2% compared to the previous year. Average spending per visit also fell by 5% to 1,897 lari ($702).

Visitor numbers also declined slightly, with the total number of non-resident arrivals down 1% to 1.3 million and total visits falling 0.2% to 1.2 million.

At the same time, tourists are staying longer in the country. Average trip duration increased by 7% to 5.87 nights, while the number of trips classified as tourism visits (stays longer than one day) rose 4% to 997,500.

In terms of arrivals, Russia remained the largest source market in the first quarter, accounting for 202,400 visitors, or 20% of the total. Turkey followed with 18.5%, while Armenia ranked third with 12%.

News.Az