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Economics
Only 52.3% of the population is connected to the sewage system

As of December 31, 2025, 2.87 million people (72.8% of the total population) were connected to the water supply system, which is 2.9% more than the similar figure of the previous year (2.79 million people).In 2025, the number of people connected to the sewage system amounted to 2.06 million (52.3% of the total population), which is 3% higher than the previous year's figure (2 million).In 2025, the number of people connected to wastewater treatment plants amounted to 1.64 million (41.6% of the total population), which is 3.1% higher than the previous year's figure (1.59 million).

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Death rate increases by 0.8% - main causes are circulatory system and...

The percentage distribution of the number of deaths by the main classes of causes of death differs for different age groups.Among the deaths of children under 5 years of age, disorders that arose in the perinatal period dominate.Injuries, poisonings, and various consequences of external causes predominate among people aged 5-39, as the probability of accidents is relatively high for this age group, while among the causes of death among the population aged 40 and older, diseases of the circulatory system and tumors will dominate in 2025.

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New Poti Port Project Brings Together Government, Business, and US Fin...

According to the Prime Minister, in recent years, the Middle Corridor has emerged as one of the most reliable routes between Europe and Asia, and Georgia has become a powerful economic and logistical hub that creates additional value for international trade.“In the first five months of this year, cargo turnover in Georgian ports increased by 21%. As for the new Poti seaport, cargo turnover here has increased by 78% over the past three years. These figures clearly indicate that the demand for our transport corridor is growing very rapidly. Our task is to respond to this demand with modern infrastructure. That is why we continue to fully modernize the country's transport network: we are expanding ports, building the Anaklia deep-water port, and upgrading railway and road highways,” said Irakli Kobakhidze.He expressed special gratitude to the US International Development Finance Corporation (DFC) and noted that the project unites the state, Georgian business and American financial institutions around a common goal. The Prime Minister also highlighted the success of the Georgian company developing the project, PACE Group, which shows that local business has the appropriate competence and resources.$25 Million US Investment in Poti PortAccording to the US Embassy in Georgia, the US Development Finance Corporation (DFC) has officially signed a second loan agreement with the Georgian company PACE Group in the amount of $25 million.The financial resources will be used to complete the construction of the second berth of the new Poti seaport.The economic impact of the project includes several key points: Increase in throughput: The port's throughput will increase by more than 1 million tons per year. Cargo diversification: The ability to process bulk cargo will significantly increase. Regional competitiveness: Critical infrastructure will be strengthened, which will make trade along the Trans-Caspian Corridor even safer and more efficient.

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DFC Signs Additional $25 Million Loan Agreement with PACE Group for Po...

The embassy said that the completion of this infrastructure project will significantly increase the port’s capacity to handle bulk cargo. In particular, the port’s throughput capacity will increase by an additional one million tons per year, which will help strengthen critical infrastructure and make trade along the Trans-Caspian Corridor safer and more efficient.The ongoing project is a continuation of the successful partnership between DFC and PACE Group.As part of this cooperation, the corporation allocated a $50 million loan for the development and construction of the new Poti Seaport Terminal in 2020.For your information, DFC is the international investment agency of the US government. Its activities are aimed at ensuring solid economic results for American taxpayers, while at the same time contributing to the sustainable economic development of US allies and partner countries.

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Batumi apartment market size grows by 22.2% to $87 million

In Batumi, in May 2026, the number of transactions in newly built apartments increased by 3.3% compared to May 2025, while transactions in old apartments decreased by 7.3%.The number of transactions increased by 13.4% in the secondary market, while the primary market recorded a decrease of 8.5%.The share of foreign buyers in transactions of old and new projects increased compared to May of last year and amounted to 49%. Foreign buyers accounted for 59% of the increase in the number of transactions in new and old projects.In addition, in May 2026, the number of residential apartment transactions in Batumi increased by 2.5% compared to May of last year and amounted to 1,324 units, while the market size increased by 22.2% to $87 million.

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Tbilisi apartment transactions up by 13.1%, market size reaches $334 m...

In May 2026, the weighted average selling price of old apartments in Tbilisi increased by 23.5% in the city center, by 3% in the wider center, and by 11.6% in the suburbs compared to May 2025. Prices in old projects across the city increased by 16%.It is worth noting that the significant increase in prices in the city center is influenced by the small number of registered transactions.In May 2026, the weighted average selling price of newly built apartments in Tbilisi increased by 7.2% in the suburbs compared to May 2025, by 10.6% in the wider center, and by 29.6% in the city center.According to recov.ge data, prices in the city center increased mainly at the expense of the primary market, as transactions in several expensive projects were registered simultaneously. Meanwhile, an 11.5% increase was recorded in the secondary market in the city center.The increase in the weighted average price of primary transactions across the city amounted to 14.9%. In the secondary market, the weighted average price across the city increased by 5.5%.In May 2026, the number of transactions in new projects in Tbilisi increased by 15.3% compared to May last year. Growth was observed in both the primary (11.4%) and secondary (20.7%) markets for newly built apartments.In addition, 40% of the growth in the secondary market came from the Samgori district. The number of transactions also increased by 5.1% in old projects. In Tbilisi, the majority of transactions in both old and new projects are carried out by Georgian citizens, while the share of foreign citizens was only 11.4% in May 2026.

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Global exports of Alsatian white wines decline, but demand in Georgia...

The report, prepared based on data from the French Customs (DGDDI), published by the American Association of Wine Economists (AAWE), shows that the value of Alsatian white wine imports to Georgia increased from €0.02 million in 2024 to €0.04 million in 2025.Overall, Alsatian wines are losing their traditional leading export positions, which is the main reason for the global decline.Significant losses were recorded in the largest markets, namely: exports to Canada decreased by 11.2%, to the USA - by 4%, and to China - by 12.6%.These losses in traditional markets were only partially offset by increases in countries such as Japan (+8.5%) and South Korea (+20.5%).According to the AAWE report, new and emerging markets, despite high percentage growth, are still too small to fully compensate for the losses caused by the decline in leading countries.

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Georgian electricity exports to Turkey at 10-year low

According to the investment bank, last month the export volume to Turkey amounted to only 36.2 GWh (compared to 172.3 GWh in May 2025), and the income received - $1 million (compared to $7.8 million in the same period last year). The researchers explained that the decline was also due to falling prices - in May, the average export price to Turkey was 2.7 US cents per kWh, which is a decrease of 39.4% year-on-year.Such a decrease in export price, volume and revenue is associated with a sharp decline in prices on the Turkish market. In May 2026, the average electricity price on the Turkish market was 1.8 US cents/kWh (vs. 6.4 US cents/kWh in May-25). Such a low price significantly reduces the economic attractiveness of exports, as exporters also had to cover system-related costs, including transmission tariffs and guaranteed capacity fees.According to the Galt & Taggart study, the difference between the Turkish market price and the average export price from Georgia is likely related to the hourly/daily structure of exports and direct contracts.The decrease in electricity prices in Turkey, in turn, is related to the construction of solar power plants and favorable hydrological conditions.In May, only four companies exported to Turkey: Adjara-Energy 2007 LLC, Energy Development Georgia LLC, Svaneti Hydro LLC, and Kasleti-2 LLC. Despite the low market prices, the continued exports may be related to both the existing transmission and dispatch agreements and the individual contractual conditions of the companies.In addition to Turkey, exports were also recorded in Azerbaijan on the balance sheet, although these were not commercial exports. The mentioned synchronous volume was a technical exchange carried out for parallel operation with Azerbaijan and was balanced by imports of the same volume and value. Since April 2026, the accounting methodology has changed and this exchange, which was previously reflected as a net in the balance, is now recorded in imports and exports.Balancing market and pricesThe average price of balancing electricity in May increased by 3.5% year-on-year and amounted to 5.1 US cents per kWh.In addition, the balancing volume increased by a negligible 0.7% year-on-year and amounted to 0.3 TWh, which represents 23% of the total supply.On June 12, 2026, an amendment was made to the grid rules, according to which: The transmission system operator is obliged to cancel the grid connection agreements for power plant projects that do not have a confirmation from the Ministry of Economy that they are at the stage of feasibility study or construction. Electrosystem will request this information from the Ministry by August 1. Project developers have the right to appeal the decision made by Electrosystem within 10 working days. Canceled projects will be refunded the paid grid connection fee. An agreement signed with the government on project development or a written confirmation from the Ministry has become mandatory for applications for connecting a new generation facility to the Energo-Pro and Telasi grids. This amendment aims to bring the power plant construction process into a single framework and release reserved capacities at grid connection points.

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Electricity exports in May fell by 73% due to falling prices in Turkey...

According to the document, last month, domestic consumption increased by 3.8% year-on-year and amounted to 1.1 TWh, however, due to a sharp decline in exports, total demand in the market decreased by 8.6% (to 1.2 TWh). The investment bank explains that May is historically an export month, which is due to the seasonality of hydropower plants, however, due to the forced limitation of generation this year, local production has decreased by 9.5% annually.The sharp decline in exports was caused by a decrease in prices on the Turkish market to a historical minimum - an average of 1.8 US cents/kWh - which, as Galt & Taggart researchers note, is associated with favorable hydrological conditions and an increase in solar generation. The increase in solar capacity in Turkey may maintain pressure on summer prices in the future, although the effect will also depend on market and hydrological conditions.According to data from the 5 months of 2026, local electricity consumption in Georgia increased by 6.1% annually and amounted to 6.2 TWh. The share of imports and thermal generation in total supply was 36.3% (vs. 31.1% in 5 months of 2025). Increased import dependence in January-April and reduced exports in May highlight Georgia's seasonal challenges.Overall, the 2026 data indicate the need to develop generation facilities that respond to Georgia's seasonal challenges, such as reservoir hydropower plants and wind farms. In addition, the data highlight the importance of developing energy storage and export infrastructure.Domestic consumption growth in all categoriesAccording to the Galt & Taggart study, domestic consumption increased by 3.8% annually and amounted to 1.1 TWh. Annual growth was recorded in all segments: Abkhazia region: +6.6% Direct consumers: +5.8% Retail consumers: +2.1% The increase in consumption is associated with both climatic factors and the activation of energy-intensive enterprises.In addition, in May 2026, hydropower generation decreased by 9.9% annually and amounted to 1.2 TWh, which is 97.5% of total supply. The decrease is associated with climatic conditions and, at the same time, generation restrictions imposed by the system operator. These restrictions became necessary to protect the balance between demand and supply. Without generation restrictions, supply would exceed demand, including the local market and exports.There is no publicly available information on the exact scope of the restrictions implemented in May.Wind and solar generation grew by 55.8% year-on-year, although its share in total supply was still a small 1%. The increase is associated with the commissioning of the 18.7 MW “Zemo Wind Station” in April and new solar plants added by the end of 2025 (totaling 10.8 MW).Thermal plants, in accordance with the seasonality characteristic of May, were not operating.Galt & Taggart researchers expect generation restrictions to continue in June-July, although to a lesser extent, because:Historically, June and July are characterized by less surplus than May.ESCO has signed a barter agreement with Turkey, within the framework of which it will export electricity to Turkey during May-July, and import in September-November. This transaction will increase the volume of exports and aggregate demand, thereby reducing generation constraints in the June-July period.The export volume to be implemented under the barter will be purchased by ESCO at 4.021 tetri per kWh from power plants that would otherwise have to curtail generation (as a result of the GSE decree). The exact commercial terms of the barter agreement, including the proportion of exports and offset imports, are not publicly known.

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Budget saved GEL 390 MLN through optimization of public procurement an...

For this purpose, in 2025, a special structure was created in the government administration - the Department of Government Efficiency. The main task of this department is to assess the effectiveness of state programs, large infrastructure projects and procurements, as well as monitor their implementation. The Prime Minister emphasized that each public resource should bring maximum benefit to citizens, which is why special attention is paid to the further development of the state procurement system.The largest indicators in the direction of optimizing governance and administrative costs were recorded in the Ministry of Economy and Sustainable Development.According to Kobakhidze, as a result of the reforms implemented since 2025, the total savings achieved in the agency reached GEL 845 million. Of this amount, GEL 60 million are annual savings obtained directly from the reduction of 2,422 staff units, while the remaining GEL 785 million were saved by the ministry through the review and improvement of ongoing projects, state procurements, and existing contractual terms."In parallel with practical reforms, the government has also implemented significant legislative changes, which have increased the transparency and competitiveness of the public procurement system," Kobakhidze said.New legal mechanisms, on the one hand, facilitate more active involvement of small and medium-sized businesses (SMEs) in public tenders, and on the other hand, ensure more responsible and result-oriented management of budget funds. The Prime Minister also noted that the institutional modernization of the civil service is underway, where about 45,000 people are currently employed. To ensure the openness of personnel policy, about 3,500 vacancies were published on the unified electronic employment platform last year alone, and more than 1,400 young people gained their first professional experience through the paid internship program.In his speech, Irakli Kobakhidze focused on the close connection between institutional reforms and macroeconomic dynamics. According to him, in 2021-2025, Georgia's average annual economic growth rate amounted to a high mark of 9.3%, and according to preliminary data for the first four months of 2026, real GDP growth is within 8.3%.In addition, the Head of Government noted that according to the forecasts of the International Monetary Fund (IMF), Georgia will remain one of the fastest growing economies in Europe and the region in the medium term, the foundation of which is created precisely by effective state institutions and consistent economic policies.

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