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

EBRD raises 2025 growth forecast to 7%

The European Bank for Reconstruction and Development (EBRD) has revised Georgia’s 2025 economic growth forecast upward by one percentage point, projecting a 7% expansion. The update comes in the bank’s latest economic review, which highlights stronger-than-expected growth this year, driven largely by the booming ICT sector.

According to the EBRD, Georgia’s economic growth slowed from 9.4% in 2024 to 8.3% in the first half of 2025. Momentum was supported by credit expansion, growth in information technology and education, and robust services exports.

Inflation, which averaged just 1.1% in 2024, rose to 3.5% in January–August 2025, slightly above the National Bank of Georgia’s (NBG) 3% target. Fiscal and external positions remain broadly stable, helped by steady tourism growth.

At the same time, the EBRD notes a decline in FDI in 2024 and early 2025, which it attributes to investor caution. The bank also points to the suspension of Georgia’s EU accession process as a risk factor that could further dampen investment flows.

Looking ahead, the EBRD projects Georgian growth to moderate to 5% in 2026. Positive dynamics include stronger external demand and sustained expansion of the services sector, while downside risks are linked to slowing global growth, stalled EU integration, and weak investor sentiment.

The EBRD’s revised forecast aligns closely with the IMF’s July update, which raised its 2025 projection for Georgia to 7.2%.

Central bank holds monetary policy rate at 8%

On September 10, the National Bank of Georgia (NBG) maintained its refinancing rate at 8% as headline inflation climbed to 4.6% YoY in August, up from the mid-summer trough.

Core inflation (excluding volatile food and energy) held at 2.8%, suggesting that upward pressures are currently supply-driven. The NBG described its stance as “moderately tight,” ready to adjust depending on how external inflation and growth trends evolve. The next Monetary Policy Committee meeting is slated for November 5.

National bank’s FX reserves hit $5.2 billion

The NBG continued to build up the country’s international reserves, purchasing $199.6 million in August 2025. Total purchases in January–August 2025 reached $1.496 billion, pushing Georgia’s international reserves to $5.2 billion as of end-August.

Credit agency S&P noted in its recent report that, amid rising political uncertainty in 2024, the NBG had intervened intensively in the foreign exchange market to reduce pressure on the lari’s depreciation. The largest decrease in reserves was recorded in October 2024, by $628 million. Since then, the NBG has restored reserve positions through stricter macroprudential instruments and higher foreign reserve requirements.

Despite this, S&P highlighted risks: deteriorating relations with the EU and the U.S. and renewed domestic political uncertainty around local elections in October may cause additional depreciation pressure on the GEL. “We believe that in such a case, the National Bank will likely resume interventions in the foreign exchange market to slow the depreciation process and maintain market confidence,” the agency wrote.

S&P Global Ratings maintained Georgia’s sovereign rating at BB/B with a “stable” outlook.

Georgian tourist visits and revenue up in 1H25

The National Tourism Administration reports that the number of international tourist visits rose by 7% in the first six months of 2025 compared to the same period last year, reaching more than 2.2 million.

NBG data shows that in the same period, international tourism receipts totaled $1.97 billion, marking a 3.8% YoY increase.

Tbilisi to add three cable-car corridors

Tbilisi plans to expand public transport with the construction of three new cable-car corridors, according to Vice Mayor Giorgi Tkemaladze, who presented the city’s transport and urban development policy.

The planned routes will connect:

– Isani – Metromsheni – Vazisubani

– Sarajishvili – Zgvisubani

– Samgori – Vazisubani

“The tradition of cable cars exists in our city. In recent years, we have also rehabilitated them. In this case, the cable car is given the function of public transport. These three directions will be a great benefit for locals in terms of public transport. Also, the construction of the mentioned cable-car corridors will be indirectly related to the release of buses and minibuses,” Tkemaladze said.

The vice mayor did not provide details on timelines or financing.

At present, three cable cars operate in Tbilisi: Turtle Lake, Rike, and the Funicular.

Georgia’s population reaches 3.9 million in 2024 census

Geostat has released additional results from the 2024 census, reporting a total population of 3.91 million, up from 3.71 million in 2014. Of this, 3.66 million (93.4%) are Georgian citizens and 257,000 (6.6%) are foreign nationals permanently residing in the country. Women account for 53% of the population, men 47%.

The census was conducted electronically in late 2024 through self-registration and in-person interviews. Preliminary results were published in June 2025, with final detailed data set for release in June 2026, covering demographics by region, municipality, and settlement type.

External trade up 6.7% Jan-Aug

Georgia’s external trade grew solidly in the first seven months of 2025, with exports reaching $3.85 billion (+9% YoY) and imports climbing to $10.31 billion (+10.8%), pushing total trade turnover to $14.15 billion, according to Geostat.

The top ten trading partners made up nearly 80% of exports, with re-exported vehicles remaining a key driver.

August showed moderation: exports slipped 5.9% YoY to $603 million, while imports fell 6.9% to $1.4 billion, narrowing the monthly trade deficit to $752 million. Over January–August, cumulative exports rose 6.7% YoY to $4.45 billion, while imports increased 9.7% to $11.8 billion, keeping trade turnover firmly above last year’s levels.

Banks post GEL 2.13 billion profit in Jan-Aug 2025

Georgia’s banking sector reported combined profits of GEL 2.13 billion in the first eight months of 2025, a 5.4% YoY increase.

The two largest lenders—Bank of Georgia and TBC—accounted for the majority of earnings. Bank of Georgia posted GEL 1.09 billion in net profit (+9.5% YoY), while TBC delivered GEL 795 million (+1.8% YoY).

Analysts note that profitability is underpinned by expanding loan portfolios, relatively low non-performing loans, and strong fee income from digital services.

Government announces GEL 876 million tender for stadium near Tbilisi airport

The Government of Georgia has announced an international tender worth GEL 876 million for the design and construction of a new 70,000-seat stadium. The site covers 270,615 square meters on Kakheti Highway near Tbilisi International Airport. Construction must be completed within 51 months of contract signing.

No subsidies for private companies in 2025 grape harvest

The National Wine Agency has presented the subsidy model for the 2025 grape harvest. The state will no longer provide subsidies to private companies; surplus grapes will be purchased only by the state-owned Harvest Management Company. In August, the company was transferred to the agency’s management by the Ministry of Economy.

The subsidy budget for 2025 is GEL 50 million. Prices will differ for high-quality and damaged grapes: damaged grapes will be purchased at 20% below the price of quality grapes.

In 2024, the government allocated GEL 35 million in subsidies to private companies purchasing at least 100 tons of Rkatsiteli grapes at GEL 1 per kilo gram, with GEL 0.20/kg provided as a subsidy. This model will not be applied in 2025.

Aviation expands: India & Türkiye routes added

IndiGo launched Mumbai–Tbilisi flights on August 2, while Türkiye’s low-cost Ajet (a subsidiary of Turkish Airlines) filed to start Ankara–Tbilisi four times weekly from late September.

In 2024, more than 1.2 million passengers traveled between Georgia and Türkiye, accounting for 47% of Georgia’s total passenger flow with its neighbors.

In January–July 2025, a record 20,766 international and domestic flights were operated at Georgian airports (+16% YoY). Currently, around 745 flights per week are operated across Georgia’s three international airports.

Unemployment rises to 14.3% in Q2 2025

Georgia’s unemployment rate climbed to 14.3% in Q2 2025, up 0.6 percentage points YoY, according to Geostat. The increase was driven largely by weaker labor market outcomes for women.

Female unemployment rose from 10.9% to 12.2%, with declines in both salaried and self-employment positions: salaried jobs fell by 7,600 to 479,000, while self-employment dropped by 13,100 to 126,700. Overall, female employment shrank by 20,900 YoY.

Male unemployment remained steady at 15.9%, with modest gains in self-employment (+16,200) offsetting a decline in salaried positions (–12,400). Total male employment edged up slightly to 760,600.

Remittance inflows climb 10.7% in August

Georgia received $321.5 million in remittances in August 2025, up 10.7% (+$31 million) YoY, according to the National Bank of Georgia. Cumulative inflows for January–August reached $2.37 billion.

The EU remained the leading contributor, accounting for 44.9% of inflows ($144.3 million, +11.7% YoY), led by Italy, Germany, and Greece. Transfers from the U.S. also grew strongly, rising 16.8% to $59.3 million. By contrast, inflows from Russia continued to contract, down 2.9% YoY to $41.3 million, extending the trend of declining dependence on Russian transfers.

Outbound remittances from Georgia also increased: residents sent $35.7 million abroad in August, up 7.8% YoY.

Upper Osiauri–Chumateliti 6.4 km highway section opened

On August 16, a 6.4 km, four-lane section of the East–West Highway between Upper Osiauri and Chumateliti was opened. The road includes 11 bridges and 5 tunnels. This section continues the 13 km Khashuri Bypass, bypassing Surami and Chumateliti and connecting to the first tunnel of the Rikoti Pass highway.

The project, financed by the World Bank with GEL 265 million, was contracted to Chinese corporation Sinohydro. The contract was signed in December 2020, with completion scheduled within four years. An earlier 2017 contract with Italian company Astaldi was terminated after the firm failed to meet obligations, leading to a dispute with the government.