According to the commission's conclusion, the existing practice of setting price caps has already proven its effectiveness, which, while maintaining market stability, has limited excessive margins in the sector.The parliamentary group is proposing to extend price regulation to at least 60% of actively circulating medicines on the market. According to the commission's forecast, this step will directly affect the consumer's pocket."It is advisable to extend the system to at least 60% of actively circulating medicines. As a result, it is expected that the population will receive an average 40% reduction in prices for medicines that are not currently subject to reference prices," the commission's conclusion states.In parallel, the recommendation envisages a gradual expansion of the state program for the management of chronic diseases. Currently, the program covers 400,000 beneficiaries and its budget is 70 million GEL, although the commission indicates the need to include additional medicines.To stimulate competition in the market, the document calls for the optimization of the procedures for registering medicines. In particular, it is planned to remove the requirement for bioequivalence studies for those medicines that have been in circulation for more than 10 years under the jurisdiction of the European Medicines Agency (EMA) or other strict regulators.According to the commission, this change is important for local manufacturers, as it will reduce both financial and time costs. In addition, it is planned to strengthen the national GMP (Good Manufacturing Practice) certification mechanism for foreign manufacturers, which will facilitate the rapid entry of new products into the market.As part of the reform, the commission calls for the introduction of a unified, coordinated monitoring system. The system should ensure: Continuous analysis of the impact of regulations to avoid reducing the range or withdrawing less profitable medicines from the market Prevention of shortages of medicines by reviewing the terms of contracts with suppliers and ensuring uninterrupted supply The Commission's conclusion, which aims to improve the value chain, will have a positive impact on price dynamics and product availability in the medium term.

1777640196

The ratio of deposits has also declined. The ratio of deposits to GDP is 64%, and loans - 67.8%.The ratio of monetary aggregates to GDP was the highest in the post-pandemic spring of 2021, when banking sector assets reached 117% of GDP.This year, according to statistics corrected at the end of April, the ratio of assets to GDP exceeded 100% in July 2025.When determining the coefficient of the State Budget, the GDP data for the last 4 quarters is used as a guide.Percentage of GDP (%)

1777639951

DemandIn Mar-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 4,121 units, of which:• Sales on the secondary market increased significantly by 26.9% y/y to 2,068 (up 15.1% y/y in 1Q26).• Sales on the primary market, where data are impacted by delayed registrations, were up 36.0% y/y to 2,053 (up 16.6% y/y in 1Q26).G&T’s real-time survey of developers, which captures current trends on the primary market, shows a slowdown on the primary market demand in Mar-26, although sales were still up 8.6% y/y. Cumulatively, primary market sales were up 16.9% y/y in 1Q26. This largely reflects a low base effect from last year, driven by domestic political instability in Tbilisi.In total, 10,907 transactions were registered in Tbilisi in 1Q26, bringing the residential market value to US$ 958mn (+23.1% y/y).SupplyIn Mar-26, construction permits were issued for 17 residential projects, with total living area reaching 150,241 sq.m (-6.7% y/y). Notably, the living area of issued permits has contracted annually for the 6th consecutive month, signalling a normalization after previously elevated levels. Overall, living area of permits in 1Q26 was down 29.9% y/y.PricesIn Mar-26, primary market price increased moderately, up 0.4% m/m to US$ 1,403 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 0.1% m/m, reaching US$ 1,305 per sq.m.RentsIn Mar-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 9.9 per sq.m (-1.2% m/m), keeping rental yield high at 8.5%.

1777639730

Georgia submitted its application to host the prestigious event in 2025, demonstrating its commitment and enthusiasm for showcasing its viticultural heritage on the global stage.The session was attended by Levan Mekhuzla, Chairman of the National Wine Agency.“The OIV is the most important organisation in the field of viticulture and winemaking. This decision will once again underline Georgia’s prominent place on the world map of wine culture – a country of great viticultural and winemaking tradition. Ultimately, this will contribute to the popularisation of Georgian wine and its establishment in the global market,” he stated.It is worth noting that Georgia has previously hosted international events organised by the International Organisation of Vine and Wine (OIV), notably the 33rd International Congress in 1962 and the 8th General Assembly in 2010.The OIV is an intergovernmental organisation comprising 51 member countries, including Georgia. Its activities include developing recommendations for viticulture and winemaking, improving wine production and grape processing techniques, and establishing international standards to foster excellence across the industry.

1777639613

According to the National Bank, the meeting was also attended by Ekaterine Mikabadze, First Vice-President of the National Bank of Georgia, and Aleksandre Khazaradze, Head of the Financial Markets Department.The central focus of discussions was the development of cooperation between BNY and Georgia’s financial sector, in particular, the expansion of partnerships with the country’s leading commercial banks: Bank of Georgia, TBC Bank, Basis Bank, Liberty Bank, Terabank, and Khalik Bank Georgia. The parties reviewed the progress achieved since BNY’s entry into the Georgian market in 2024 and discussed the prospects for deeper engagement.Particular attention was devoted to potential collaboration in the areas of foreign reserve management, custody services, and liquidity management solutions. The meeting also touched on Georgia’s macroeconomic outlook and current developments within the financial sector. The National Bank’s President took the opportunity to highlight the country’s robust macroeconomic fundamentals, the resilience of its banking system, and the reliability of its regulatory and compliance framework, including its high standards in anti-money laundering (AML) and financial stability.“Georgia continues to offer a stable and attractive environment for international financial institutions. We welcome further engagement with global partners, particularly in areas that support the development of financial markets and the efficient management of reserves,” said Natia Turnava.Sergei Kotov expressed a positive assessment of BNY’s business relationships in Georgia, underscoring the institution’s commitment to expanding cooperation with both the commercial sector and the National Bank. He emphasised BNY’s readiness to support the development of financial infrastructure and services in the country.According to the NBG, both parties affirmed their intention to continue their collaboration and to explore further opportunities for integrating Georgia’s financial system into global markets.

1777639446

Based on statistical data from both countries, tourism activity in the region is experiencing some correction compared to the previous year.According to Geostat, the number of international visitors to Georgia reached 994.8 thousand in 1Q26, which is 2.5% higher than in the same period last year. Of particular note is the 4% increase in tourist-type visits, which amounted to 997.5 thousand.In contrast, according to Azerbaijani state statistics, 484.4 thousand foreigners arrived in the country, which is 4.7% less than in 1Q25. This figure is almost two times lower than the number of visitors received by Georgia.Despite the increase in the number of visitors, tourism revenues in Georgia decreased. Total spending amounted to GEL 2.2 billion, which is a 5.2% decrease. The average cost per visit decreased by 5.1% and amounted to 1,897.1 GEL.A similar trend is observed in Azerbaijan, where spending by foreigners decreased by 14.8% and amounted to 511.7 million manat. The largest decrease in the structure of expenses was recorded for accommodation services (-25.4%).Russia remains the main export market for both countries. In Georgia, 202.4 thousand visitors from Russia were recorded (20.3% share).In the case of Georgia, important players are Turkey (18.5%) and Armenia (11.8%). In Azerbaijan, the spending of tourists arriving from Turkey increased by 6.4%, while the spending of incoming flows from India decreased by 3 times.Interestingly, 83.6% of visits to Georgia are repeat visits, and the average age of visitors ranges from 31-50 years. In Azerbaijan, the largest share of spending (234.6 million manat) falls on transport services.

1777639362