Economics

Construction Permits for Residential Spaces Decline by 10% – TBC Capit...

During the reporting period, the number of residential real estate transactions in Tbilisi grew by 18% year-on-year, totaling 34,434 units. In September 2026 alone, the number of apartments sold increased by 10%, with 4,254 transactions recorded.Based on data for the first nine months of 2026, the average sale price for apartments reached $1,353 per square meter (+4% year-on-year). In September, the average sale price rose to $1,373 (a 3% year-on-year increase). By category (average sale price over the last 12 months, $/sq.m): Luxury: $4,319 Premium+: $3,121 Premium: $2,374 Comfort: $1,621 Economy+: $1,208 Economy: $865 Regarding the rental market, the average rental price for the period of January–September 2026 decreased by 3% year-on-year, reaching $10.1 per sq.m, while the yield on real estate fell by 0.6 percentage points to 8.2%. In September alone, the rental price stood at $10.3 (a 1% increase), and the yield was 8.2% (0.2 percentage points lower compared to the previous year).In terms of market segmentation, sales of older apartments increased by 13% year-on-year in September 2026 (3,496 transactions). Conversely, sales of new apartments declined by 3%, totaling 758 transactions. This decrease is primarily attributed to apartments priced below $1,500 per sq.m. As a result, new apartments accounted for 18% of total sales. Over the nine-month period, growth was recorded in both segments: sales of existing apartments increased by 23%, while sales of new apartments rose by 3%.A report by TBC Capital notes that the potential market supply, represented by the residential floor area covered by issued construction permits, decreased by 10% during the first nine months, amounting to approximately 854,000 square meters.This decline was primarily driven by developments in the Isani, Gldani, and Didi Dighomi districts. The largest shares of construction permits were issued for the Nadzaladevi and Didi Dighomi districts (17% each), followed by Saburtalo (15%).

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Transport costs rose by 21.9% and housing costs by 10.1% - annual infl...

With regard to the annual core inflation, the prices increased by 4%, while the annual core inflation without tobacco amounted to 3.9%.The annual inflation rate was mainly influenced by price changes for the following groups:Transport: the prices for the group increased by 21.9 percent, contributing 2.54 percentage points to the overall index. Within the group the prices increased for operation of personal transport equipment (30.3 percent), transport services (14.5 percent) and purchase of vehicles (1.7 percent);Food and non-alcoholic beverages: the prices in the group increased by 3.1 percent, contributing 1.07 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: fish (20.2 percent), meat (7.6 percent), oils and fats (7.0 percent), coffee, tea and cocoa (5.7 percent), vegetables (4.1 percent), bread and cereals (4.0 percent), milk, cheese and eggs (0.6 percent). At the same time, prices decreased for fruit and grapes (-4.5 percent), sugar, jam, honey, chocolate and confectionery (-3.3 percent), mineral waters, soft drinks, fruit and vegetable juices (-1.2 percent);Housing, water, electricity, gas and other fuels: the prices for the group increased by 10.1 percent, contributing 0.98 percentage points to the overall index. The prices were higher for the subgroups of actual rentals for housing (12.8 percent), maintenance and repair of the dwelling (11.9 percent), electricity, gas and other fuels (10.6 percent);Health: the prices increased by 8.4 percent, contributing 0.69 percentage points to the overall index. The prices were higher for the following subgroups: out-patient services (11.7 percent), medical products, appliances and equipment (9.4 percent);Education: the prices for the group decreased by 12.0 percent, contributing -0.53 percentage points to the overall annual inflation rate. The prices decreased for tertiary education (-32.9 percent). At the same time, prices increased for pre-primary and primary education (8.8 percent), secondary education (6.6 percent) and education not definable by level (5.5 percent).

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22.6% of researchers are employed in the social sciences – Geostat

The number of employees in Research and Development increased by 2.2 percent and amounted to 16 552, of which 14 390 were researchers. 55.1 percent of researchers are women and 44.9 percent are men.67.5 percent of researchers have a doctoral or equivalent degree, 29.8 percent - a master’s or equivalent degree and 2.7 percent - a bachelor’s or equivalent degree.As for the distribution of researchers by age, the highest rate for women falls in the age group of 45-54 years (22.9%), while for men it falls in the age group of 65 years and older (24.4%).The largest share of researchers work in social sciences, totalling 3 250 (22.6%), while the smallest share work in agricultural and veterinary sciences, where 474 persons (3.3%) are employed.

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Georgia’s Economy Grew by 6% in September and by 7.4% Over 9 Months –...

In September 2026, compared to the same period of the previous year, significant contributions to growth came from the following sectors: construction, information and communication, mining and quarrying, trade, and financial and insurance activities.A downward trend was observed in the manufacturing and the administrative and support service activities sectors.

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Service Exports Increased by 10.3%

In 2025, the "travel" category accounted for the largest share of service exports, totaling $4.69 billion and representing 54.7% of total service exports. Transport services rank second with $1.74 billion (20.4% of total exports), while telecommunications, computer, and information services rank third with $1.37 billion (16%).In terms of service imports for 2025, transport services represent the largest category, amounting to $2.24 billion or 58.1% of total imports. Travel ranks second with $460.8 million (11.9% of imports), followed by "other business services" in third place with $340.2 million (8.8% of imports).In 2025, the top ten export destinations accounted for 54% of Georgia's total service exports. The largest export destinations are: Turkey – $958.6 million Russia – $899.2 million Israel – $686.3 million In 2025, the top ten import partner countries accounted for 46% of Georgia's total service imports. The largest import sources are: Turkey – $556.9 million China - $210.9 million USA - $182.6 million

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International Visitor Numbers Rise in Georgia, but Average Spending Fa...

The number of international visitors reached 2.2 million, rising by 3.1% year-on-year. Russian citizens accounted for the largest share at 26.7% (596,800 visitors), followed by Turkey at 14.5% and Armenia at 11%. The largest number of visits was also made by citizens of Russia (695,800), Turkey (398,100) and Armenia (316,200).Leisure, entertainment and recreation accounted for 58.8% of visits. Tbilisi and Adjara were the most visited destinations, recording 1.35 million and 1.29 million visits, respectively. The average stay increased 2.2% to 6.4 nights, while 76.7% of visits were repeat visits.Despite the increase in visitor numbers, spending declined. International visitors spent GEL 5.7 billion during the quarter, down 8.2% year-on-year. Average expenditure per visit fell 11.1% to GEL 2,194.4.

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Construction Permits Increase by 2%

Nearly three-quarters of these permits are concentrated in four regions of the country: specifically, 48.1% of the planned construction work is located in Tbilisi, 8.9% in the Kvemo Kartli region, 8.2% in the Kakheti region, and 7.8% in the Autonomous Republic of Adjara.It is worth noting that between January and September 2026, permits were issued for the construction of various types of structures, including multifunctional residential complexes, commercial facilities, hotels, industrial enterprises, agricultural facilities, and other buildings. According to Geostat data, 2,307 facilities - covering a total area of 2,543.6 thousand square meters - were put into operation during the period from January to September 2026. This represents a 2.8% increase in area and a 5.9% decrease in the number of facilities compared to the same period of the previous year.More than two-thirds of the facilities put into operation are located in four regions of the country: specifically, 32.5% are in Tbilisi, 13.9% in the Mtskheta-Mtianeti region, 12.2% in the Kakheti region, and 8.6% in the Kvemo Kartli region.

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Gov’t to Purchase 70 Buses for the Rustavi-Tbilisi Route for GEL 36.5...

The procurement concerns 8–9 meter-long, low-floor, diesel-powered buses, designed to accommodate at least 50 passengers and adapted for persons with disabilities. The interiors will be equipped with heating and air conditioning systems, USB ports, and information monitors.The buses are to be delivered to Rustavi in stages within 240 calendar days of the signing of the contract. The submission period for bids in the tender will open on October 29 and close on October 30.

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67% of the postal and courier sector's revenue comes from internationa...

According to Geostat, international postal and courier services accounted for the largest share of revenue, at 67%, while domestic services accounted for 33.0%.Parcel deliveries generated 76.8% of the total revenue of postal and courier companies. Of this amount, 70.3% came from international shipments and 29.7% from domestic deliveries.Meanwhile, written correspondence accounted for 17.3% of the companies’ total revenue. International correspondence represented 57.8% of this category, while domestic correspondence accounted for 42.2%, according to the agency’s report.In 2025, postal and courier companies handled 16.4 million parcels and 7.0 million pieces of written correspondence.The average annual number of people employed by postal and courier companies stood at 4,600 in 2025, including 1,800 couriers and postal workers.

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The Producer Price Index for Industrial Products increase by 4.6%

The prices for mining and quarrying decreased by 0.1 percent compared to August 2026, resulting in a -0.01 percentage point contribution to the overall monthly PPI change. In the same period, the prices for manufactured products decreased by 0.1 percent, contributing -0.05 percentage points to the monthly index change. Besides, the prices increased for electricity, gas, steam and air conditioning by 0.4 percent, contributing 0.04 percentage points to the monthly index change.The annual PPI rate was mainly affected by price changes for the following products: Mining and quarrying: the prices were 12.6 percent higher, contributing 0.88 percentage pointsto the overall annual index change. Within the group, the prices were higher for the subgroup ofmetal ores (12.1 percent); Manufactured products: the prices increased by 4.1 percent, contributing 3.22 percentagepoints to the overall annual index increase. There was a notable increase in the prices for foodproducts (4.1 percent) and basic metals (8.5 percent); Electricity, gas, steam and air conditioning: the annual price increase amounted to 3.2 percent,which contributed 0.34 percentage points to the annual index change; Water supply, sewerage, waste management and remediation services: the annual priceincrease amounted to 5.8 percent, which contributed 0.18 percentage points to the annual indexgrowth.

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Transport costs rose by 21.9% and housing costs by 10.1% - annual infl...

1793705085 • Economics

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Politics

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Georgia’s PM: Joint Georgia–Azerbaijan projects safeguard reliable tra...

Highlighting established energy arteries and new clean energy ventures, Kobakhidze underscored the continental importance of the bilateral energy alliance.“Energy represents another critical dimension of the strategic relationship between Georgia and Azerbaijan. Jointly executed projects, including the Baku–Tbilisi–Ceyhan oil pipeline, the Baku–Tbilisi–Erzurum gas pipeline, the Baku–Supsa pipeline, and the Southern Gas Corridor, have for many years ensured the reliable transit of energy resources and strengthened both regional and European energy security.Furthermore, Georgia, alongside Azerbaijan, Romania, and Hungary, is actively developing the Green Energy Corridor, designed to transmit renewable energy and closely integrate the South Caucasus into the European energy market,” the Prime Minister added.Kobakhidze noted that the bilateral agenda encompasses extensive cooperation across defence, culture, education, agriculture, healthcare, tourism, and customs administration.“We stand ready to reinforce existing links and foster new joint initiatives. Prime Minister, today’s session allows us to review our shared achievements, examine current challenges, and agree on future priorities. I am confident that the commission’s work will advance concrete projects and unlock new opportunities for both our nations,” Kobakhidze concluded.

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PM Ali Asadov: Strengthening ties with Georgia remains top foreign pol...

Highlighting the momentum behind high-level political dialogue, Asadov pointed to key leader visits as pivotal drivers of bilateral cooperation.“The dynamic pace of high-level political dialogue plays an essential role in deepening our ties. President Ilham Aliyev’s visit to Georgia in April, alongside your visit to Azerbaijan in May, was particularly significant. These engagements and the resulting agreements reaffirm the strategic depth of our relationship and bolster cooperation across multiple sectors. Furthermore, our nations consistently support one another within international organisations, particularly regarding territorial integrity and sovereignty,” Asadov noted.Turning to commercial ties, the Azerbaijani Prime Minister emphasised robust growth across trade and investment.“Trade and economic relations are demonstrating very positive momentum and expanding steadily. Georgia is Azerbaijan’s primary trading partner. Over the first nine months of this year, bilateral trade turnover surged by more than 40% year-on-year, reaching USD 1 billion,” Asadov stated.“Investment cooperation is showing similarly strong dynamics. Azerbaijan’s total investment footprint in Georgia stands at approximately USD 4 billion. Meanwhile, our jointly executed mega-projects, including the Southern Gas Corridor, play a vital role in ensuring energy security for both our region and wider Europe,” Asadov concluded.

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Constitutional Court Rejects Motion to Recuse Judges

During the proceedings, some representatives of the respondent side requested the recusal of the entire bench, while others sought the recusal of specific individual judges. Ana Tsitlidze, a representative of the "Unity - National Movement" party, stated that the lawsuit in question is aimed not only at banning opposition political parties but also at undermining the sovereignty and freedom of Georgia. Representatives of the plaintiff, "Georgian Dream," opposed the recusal motion, following which the court retired to deliberate. Following the rejection of a motion, the substantive review of a lawsuit filed by the ruling team has officially begun in the Constitutional Court. The lawsuit seeks to have five opposition parties declared unconstitutional, banned, and their registrations revoked. The case is being heard by the Plenum of the Constitutional Court, composed of seven judges. Substantive hearings are scheduled for October 21, 22, and 23.The lawsuit submitted to the Constitutional Court is signed by 88 members of the 11th convocation of Parliament. Based on this filing, the Court is tasked with considering the potential declaration of unconstitutionality and the banning of the following five political entities: "Unity – National Movement"; "Coalition for Change – Gvaramia, Melia, Girchi, Droa"; "Strong Georgia – Lelo, For the People, For Freedom!"; "Federalist Party"; "The party "Gakharia for Georgia." Arguments of the Plaintiffs and the Conclusion of the Temporary Investigative CommissionAttached to the constitutional lawsuit is the conclusion of a temporary investigative commission established within the 11th convocation of Parliament. According to the plaintiffs, the named political entities have, since 2016—in a virtually continuous manner—rejected the political legitimacy of Georgia’s incumbent government and the ruling party, both in terms of domestic and foreign policy. The authors of the lawsuit assert that these parties have operated for years as a unified coalition, engaging in unconstitutional actions, including acts of sabotage against the state.The lawsuit cites the formation of an "Opposition Alliance" on March 2, 2026—intended for "joint work to achieve common goals"—as a recent example of this coalition. The plaintiffs point out that a declared principle of this alliance is the rejection of the legitimacy of elected bodies and public officials. Furthermore, the lawsuit highlights platforms established through the mediation of former President Salome Zourabichvili, as well as the cooperation between the "ENP" [United National Movement] and the party "Gakharia for Georgia" within the municipal councils (*sakrebulo*) of Chkhorotsqu, Tsalenjikha, Rustavi, Zugdidi, and Senaki following the 2021 local self-government elections. Furthermore, the lawsuit notes that although other small or fictitious parties are closely linked to the aforementioned entities (for example: "Elene Khoshtaria – Droa," "Yes to Europe – Strategy Agmashenebeli," "European Georgia," "Republican Party," "Freedom Square," "National Democratic Party," "Girchi – More Freedom," etc.), there is currently no apparent necessity to ban them, as they do not exert any substantial influence on politics; however, the question of their unconstitutionality may arise at a later stage.Human Rights Violations and the August 2008 WarA significant portion of the lawsuit is dedicated to the period of the "United National Movement’s" governance from 2004 to 2012. According to the plaintiffs, a system involving the torture and inhumane treatment of inmates within penitentiary institutions was established and developed during this period. The lawsuit states that fundamental rights guaranteed by the Constitution and the European Convention on Human Rights have been violated—including the rights to life, health, privacy, property, and media freedom.Furthermore, the lawsuit focuses on the 2008 Russo-Georgian War and related events. The MPs assert that, during its time in power, the "National Movement" systematically carried out actions that facilitated the occupation of Georgian territories and strengthened the political position of the occupying force.The plaintiffs claim that between 2019 and 2025, there were six direct attempts to overthrow the constitutional order of Georgia and alter it through violence. Consequently, the authors of the lawsuit, signed by 88 MPs - are requesting that all five named political parties be declared unconstitutional, that their activities be banned, and that their registration in the Public Registry be revoked.Proceedings in the Constitutional Court are currently ongoing.

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EU Allocates EUR 38 MLN for Projects Supporting Georgia’s Population i...

The new projects that will continue to make a real difference in the lives of families and communities across Georgia: Economic opportunities in small cities and towns Skills for a changing labour market Socio-economic development in rural areas, especially driven by women Better access to markets and better food quality Actions to combat violence towards women and girls Safe and orderly migration Climate adaptation and disaster preparedness Continued support for communities in Abkhazia

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Georgian Prime Minister met with Iranian President Masoud Pezeshkian

The meeting, held in Yerevan on the sidelines of the 17th Conference of the Parties to the UN Convention on Biological Diversity (COP17), touched upon bilateral relations between the two countries. The parties highlighted positive cooperation in tourism.According to the Government Administration of Georgia, the meeting also focused on the regional security situation. The Georgian Prime Minister reiterated the vital importance of dialogue and diplomatic engagement in achieving de-escalation and ensuring lasting peace.