Last year, Georgia's commercial banking sector continued to improve, with earnings offsetting losses from a year earlier, when restrictions to stem the spread of the COVID-19 were initially implemented, damaging the country's tourist-dependent economy.

From January through December, commercial banks had a cumulative net profit of US$674 million, compared to $32.3 million in 2020. Only in November 2020 did the banking sector generate a profit. According to the country's central bank, overall income in 2021 was US$1.9 billion, up from US$1.5 billion in 2020. During that time, banks cut their costs by US$1.1 billion, compared to US$1.49 billion previously.

Georgia's tourism-dependent economy has been particularly impacted by the COVID crisis, and it lacks the resource extraction or manufacturing basis that has helped other ex-Soviet republics weather the storm.

The country began its economic recovery in April of last year, with a year-on-year growth rate of 44.8%. The country's economic recovery accelerated as it lifted the bulk of the limitations it had set to combat the coronavirus outbreak, albeit growth had been declining since April.

In August, the nation imposed various limits in response to an increase in the number of illnesses and deaths.

Georgia's gross domestic product (GDP) increased by 10.7% year on year in January-November after decreasing by 5.9% the previous year. The economy grew by 12% in November alone, compared to a decrease of 7.7% a year before. Apart from construction, all sectors of the economy grew.

Georgia increased its economic growth prediction for 2021 from 4.3% to 7.7% in July, in accordance with the International Monetary Fund's (IMF) current projection and amid signs of economic improvement.

The central bank forecasted a 10% increase in economic growth in 2021, as the country continued to show signs of recovery and increased demand following months of contraction due to limitations implemented to combat the coronavirus outbreak.

Georgia's GDP is now expected to expand 7.7% in 2021 and 5.8% in 2022, according to the International Monetary Fund (IMF). The IMF warned in October that considerable risks to Georgia's economic recovery persisted, including delayed immunisation.

Fitch Ratings updated Georgia's long-term foreign-currency Issuer Default Rating (IDR) from Negative to Stable in August and confirmed the IDR at 'BB'.

Georgia's banking industry, which consists of 14 commercial banks with have foreign capital, began to show signs of recovery at the start of the year as some of the pandemic's restrictions were removed. Fitch Ratings upgraded three major Georgian commercial banks – TBC Bank JSC (TBC), Bank of Georgia (BOG), and JSC Liberty Bank (LB) – from "negative" to "stable" in March, while upholding their long-term Issuer Default Ratings (IDRs).

TBC and BOG are Georgia's two largest commercial banks, both of which are listed on the London Stock Exchange.

In August, Fitch upgraded the long-term Issuer Default Ratings (IDRs) of two Georgian commercial banks, ProCredit Bank (PCBG) and Halyk Bank (HBG), from Negative to Stable, and affirmed the IDRs at 'BB+.' Both banks are among the ex-Soviet country's top 10 commercial banks.