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Trans-Caspian transit boosts Georgia's external sector in 1H2025 - ADB

Economy Materials 30 September 2025 18:10 (UTC +04:00)
Trans-Caspian transit boosts Georgia's external sector in 1H2025 - ADB
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, September 30. Georgia’s external sector continued to expand in the first half of 2025, with the country strengthening its position as a key hub for Trans-Caspian cargo flows, according to the Asian Development Bank (ADB), Trend reports.

Merchandise exports rose by 13.7%, while imports grew by 12.4%. Vehicle reexports - one of Georgia’s main sources of foreign exchange - increased by 30.3%, though ADB warned that the new 25% U.S. tariff on imported vehicles could reduce future reexports.

At the same time, services provided an important buffer against possible trade fluctuations. Service exports expanded by 10.2%, supported by steady growth in tourism and rapid development in information technology. Transport services, in particular, benefited from Georgia’s growing role as a key transit corridor for Trans-Caspian movements of goods.

Tourism revenue increased by 3.8% year on year, building on record receipts in 2024. Meanwhile, money transfers rose by 3.5% overall, with higher inflows from the U.S. and Europe offsetting a sharp 26.5% decline in remittances from Russia.

Although foreign direct investment fell by 7.7% due to weaker inflows in most sectors, the share of reinvested earnings remained high at 83.6%, reflecting sustained investor confidence.

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