GIMP How to make round / circle text

Set guides to make it easier to draw the circle: vertical and horizontal lines.

Select Ellipse and start creating circle by dragging your mouse from the center. Once done right click the mouse and Select >>> To Path

Then click Select >>> None to clear the view

Click Text tool and start writing the text, you may change the font, text size, etc... Then right click from dropdown menu choose Text along Path. 

Create new layer Fill with Transparency, click the Path tab then select the path we have created, right click the mouse choose Add to Selection. Go to Edit menu, Fill with BG or FG Color. Time to arrange the round text we have just created by rotating is. In case you are having difficulties finding the rotate button, click Layer >>> Transform >>> Arbitrary Rotation.