In May, Italy emerged as the leading source of remittances to Georgia, overtaking Russia for the first time, with data drawn from the Georgia National Bank. The shift marks a notable realignment in the flow of funds that support the Georgian economy, highlighting the important role of diasporas in sustaining household incomes and domestic markets.
Specifically, Georgia received 48.12 million dollars from Italy in May, representing a 7.74 percent rise compared with May of the previous year. Russia, once in the top position, reported a nearly identical level of transfers at 48.11 million dollars, but the total from the Russian Federation to Georgia declined sharply by 69.5 percent on the year. The United States completed the top three remittance sources with 47.22 million dollars, underscoring the diversified pattern of Georgia’s external income channels.
Rounding out the top five remittance origins were Greece with around 22 million dollars and Israel with about 21.78 million dollars, reflecting a broad geographic footprint of Georgians working abroad and sending support home. These inflows remain a critical element of Georgia’s external accounts and have a meaningful impact on consumption, private investment possibilities, and financial stability for many families.
World Bank indicators place Georgia around the 21st position among nations dependent on foreign income, underscoring the persistent importance of remittances to the country’s broader economic framework. In times of global volatility, these funds provide a cushion for household budgets, help smooth consumption, and contribute to macroeconomic resilience during shocks in other sectors.
Meanwhile Georgia continues to attract international visitors, including a noticeable share of travelers from Russia. In June, the segment of bookings by Russian tourists rose compared with the same period in the previous year, signaling sustained interest and the potential upside for Georgia’s tourism sector. This trend aligns with ongoing efforts to revive travel and hospitality activity following earlier disruptions and to diversify Georgia’s tourism demand across markets.
Earlier reports indicated that Georgia’s tourism earnings had surpassed pre pandemic levels, reflecting a robust rebound in visitor spending and the sector’s growing contribution to the economy. Together with remittance inflows, tourism income complements domestic production and employment, helping to support growth in both urban and rural areas and reinforcing Georgia’s resilience to external shocks.