Investment News
Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment. Information in this issue was taken from BM.ge
World Bank forecasts 5.5% economic growth for Georgia in 2026
The World Bank’s Global Economic Prospects 2026 report from January forecasts that the Georgian economy will grow by 5.5% in 2026, following estimated growth of 7% in 2025. The projection is 0.5 percentage points higher than the Georgian government’s official forecast, as the 2026 state budget is based on a 5% growth assumption.
According to the World Bank, Georgia, along with other countries in the Caucasus and Central Asia, continues to demonstrate solid economic dynamics, although growth is expected to moderate compared to the exceptionally strong performance recorded in recent years. The report notes that economic activity in Georgia is projected to normalize from elevated post-pandemic levels, reflecting both domestic adjustments and broader regional and global factors.
The World Bank forecasts that average economic growth across the South Caucasus region will reach 3.3% in 2026. Among neighboring countries, Armenia is expected to grow by 4.9%, Azerbaijan by 1.8%, Turkey by 3.7%, Kazakhstan by 4.5%, Ukraine by 2%, and Russia by 0.8%. In Azerbaijan, growth is constrained by weak hydrocarbon production, driven by declining oil prices and tight fiscal policy.
The report also highlights that the preliminary peace agreement reached between Armenia and Azerbaijan in August 2025 may contribute to greater regional stability and deeper economic integration, which could have positive spillover effects for trade and investment across the South Caucasus, including Georgia.
New mandatory health insurance requirement comes into effect for foreign visitors
All foreign citizens entering Georgia are now required to hold valid health and accident insurance for the duration of their stay, as of January 1. The requirement is established under amendments to the Law on Tourism and is aimed at increasing tourist safety and aligning Georgia’s tourism framework with international practice.
According to the regulation, travelers must possess insurance that covers health protection and accident risks, including immediate access to emergency medical services if necessary. The insurance must be valid at the time of crossing the Georgian border. Specific insurance schemes and technical conditions will be approved by a government decree.
Officials have indicated that designated points may be established at airports to allow arriving travelers to purchase insurance upon entry if required. The measure applies to all foreign visitors, regardless of nationality, and is intended to reduce financial and administrative pressure on Georgia’s healthcare system while enhancing visitor protection.
Central bank keeps refinancing rate unchanged at 8%
On January 10, the Monetary Policy Committee of the National Bank of Georgia (NBG) decided to maintain the refinancing rate at 8%, citing persistent inflationary risks despite signs of normalization. Inflation declined to 4.8% in November and further to 4% in December, down from earlier peaks.
The NBG noted that core inflation stood at 2.3%, while service inflation was close to the 3% target at 2.6%. Food prices remained the primary driver of headline inflation. According to the central scenario, inflation is expected to average 4% in 2025 and gradually approach the 3% target from the second quarter of 2026.
The committee considered both high- and low-inflation risk scenarios, including global commodity price volatility, geopolitical risks, and shifts in aggregate demand. It stated that future policy adjustments will depend on updated data and risk realization. The next MPC meeting is scheduled for February 11, 2026.
Tbilisi International Airport expansion to double passenger capacity with $150 million investment
On January 3, the Ministry of Economy and Sustainable Development announced that a $150 million investment agreement has been reached with ADP Group, the owner of TAV Airports, to expand the capacity of Tbilisi International Airport. Under the revised agreement, TAV will remain the airport’s operator until 2031, extending the original concession period that was set to expire in 2027.
The investment will double the airport’s annual passenger handling capacity from 5 million to 10 million passengers. The expansion includes increasing the number of aircraft stands from 58 to 65 and upgrading terminal infrastructure. The state-owned Union of Airports of Georgia will receive an advance payment of $25 million and a threefold increase in annual revenue from the airport under the revised commercial terms.
According to government data, Tbilisi International Airport served 5.4 million passengers in 2025. In 2024, TAV Urban Georgia reported revenue of 341.4 million GEL and profit of 184.2 million GEL. The airport currently generates $25 per departing international passenger in service fees.
The agreement also includes marketing support for airlines to encourage new routes and attract additional international carriers. The government continues to plan the development of the new Vaziani Airport project, expected to become operational in 2031 with a planned capacity of 20 million passengers annually.
Georgia’s IT sector generates record $791 million in foreign revenue
On January 18, the National Bank of Georgia published data showing that Georgia’s IT sector generated $791 million in foreign revenue during the first nine months of 2025, a 66% YoY increase. The figure exceeds the sector’s total foreign income for all of 2024, which stood at $688 million.
Employment in the information and communication sector increased to 52.5 thousand workers in 2025, up from 30.6 thousand in 2021. As of the third quarter of 2025, average monthly salaries in the sector reached 4,277 GEL, reflecting a 7% annual increase.
The growth of the sector in recent years has been partially attributed to the relocation of foreign IT specialists to Georgia.
Banking sector profit expected to reach ₾3.3 billion in 2025
In early January, the Banking Association of Georgia announced that commercial banks’ profits are expected to reach 3.3 billion GEL for 2025. According to the Association’s analytical director David Rusia, sector assets grew by approximately 10% during the first 11 months of the year, with loan growth reaching 13–15%.
Retail lending remained the primary growth driver, although corporate lending accelerated in November. Dollarization levels continued to decline in both loans and deposits, aligning with recommendations from international rating agencies.
Commercial banks generated 2.98 billion GEL in profit during the first 11 months of 2025, representing a 4% YoY increase. The association noted improvements in return on equity and overall profitability indicators.
Georgia and Serbia launch free trade negotiations
On January 12, the Ministry of Economy announced that Georgia and Serbia have formally launched negotiations on a bilateral free trade agreement. The announcement followed an official visit by Georgian Dream Minister Mariam Kvrivishvili to Serbia, where she co-chaired the second session of the Georgia–Serbia Joint Commission for Trade and Economic Cooperation alongside Serbian Minister Jagoda Lazarević.
Following the session, the parties signed a joint statement confirming the start of FTA negotiations. Discussions focused on strengthening bilateral trade, economic cooperation, and investment ties. As part of the visit, the Georgian delegation reviewed the Eagle Hills Belgrade Waterfront project and visited the Belgrade Exhibition Center, which will host Expo 2027 from April to August 2027.
Final section of Rikoti highway opens, completing key East–West corridor segment
The remaining 4-kilometer section of the Rikoti Chumateleti–Khevi road was officially opened on January 14, completing the final unopened segment of this part of the East–West Highway.
The Chumateleti–Khevi section spans 11.7 kilometers and required an investment of 330 million GEL. Overall, the Rikoti project includes 52 kilometers of new four-lane road, 51 tunnels, and 97 bridges. At present, 48 kilometers are already operational, reducing travel distance by 8 kilometers and significantly reducing travel time.
The total cost of the project is approximately 2.6 billion GEL and is financed through loans from the Asian Development Bank, European Investment Bank, World Bank, and the Georgian state budget.
Georgia’s foreign exchange reserves reach record $6.16 billion
The National Bank of Georgia reported on January 22 that foreign exchange reserves had reached a record $6.16 billion in December 2025, representing a 38% YoY increase. Reserves increased by $342.6 million during December alone.
The growth was driven in part by large-scale dollar purchases by the NBG and a rise in gold prices. Gold now accounts for 16.3% of total reserves, valued at $1 billion. The bank purchased over $2 billion in foreign currency during January–November 2025. Updated reserve data will be published on February 6, 2026.
Georgia’s imports reach $18.5 billion in 2025
On January 26, the National Statistics Office of Georgia reported that the country imported goods worth $18.5 billion in 2025, an annual increase of 9.7%. Exports totaled $7.3 billion, reflecting 11% YoY growth.
Passenger cars dominated imports at $3.9 billion, though $2.8 billion of this amount was re-exported, leaving net imports of approximately $1.1 billion. Petroleum products ranked second at $1.3 billion, followed by packaged medicines at $680 million.
Import data were influenced by a one-off operation in January related to the relocation of works of art to Georgia, which added $482 million to imports. Excluding this transaction, total imports would have amounted to around $18 billion, with annual growth closer to 5%. Turkey remained Georgia’s largest import partner, followed by the United States and China.
E-commerce market triples to ₾3.5 billion, forecast to reach ₾10.7 billion by 2030
On January 27, investment bank Galt & Taggart reported that Georgia’s e-commerce market tripled in size between 2018 and 2024, reaching 3.5 billion GEL. The market is expected to grow to 4.7 billion GEL in 2025 and 10.7 billion GEL by 2030.
Domestic sales accounted for 61% of the market in 2024, while cross-border orders made up 39%. The number of online buyers increased to 1 million, and more than 10,000 Georgian companies were engaged in online sales in 2025.
Annual inflation declines to 4% in December
On January 20, Geostat reported that annual inflation in December 2025 declined to 4%, down from 4.8% in November. Food and non-alcoholic beverages remained the largest contributors, with prices increasing by 8.8% YoY. Healthcare prices rose by 7%, while alcoholic beverages and tobacco prices increased by 4.4%. Price growth was also observed across outpatient medical services, hospital services, and pharmaceutical products.