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Economics
Foreign trade decreased by almost 7%. Exports increased by 23%

Of this, exports were $1.02 billion (increased by 22.9%), and imports were $2.48 billion (decreased by 15.4%). Trade deficit in January-February 2026 amounted to $1.45 billion, which was 41.5% of foreign trade turnover.

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Gov’t replaces import ban on cars older than 6 years with increased ex...

According to the change, when importing cars manufactured more than 6 years ago, each cubic centimeter of engine will be taxed at 4.5 GEL instead of 0.8 GEL. This means that the excise tax will increase 5.6 times.The new regulation significantly increases the cost of customs clearance for popular models:• A car with a 1.5-liter engine: the customs clearance fee increases from 1,200 GEL to 6,750 GEL.• 2.0-liter engine car: the tax increases from 1,600 GEL to 9,000 GEL.According to Irakli Kobakhidze, the above-mentioned adjustment is an alternative to the ban.“Instead of banning the import, a customs clearance tariff of 4.5 GEL per cubic meter will be imposed on the relevant cars. Accordingly, the ban on import will be replaced by an increased excise tax,” the Prime Minister noted.The initial initiative, which was submitted to Parliament on February 12, envisaged a complete ban on the import of cars older than 6 years. According to the government, the goal of the decision is to improve the ecological situation, protect the health of citizens and relieve traffic congestion. According to the Prime Minister, since 2012, the number of registered cars in Georgia has increased from 864 thousand to 2 million.

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Georgia Remains 35th in the Index of Economic Freedom - The Heritage F...

Despite the slight increase, Georgia’s indicator still lags behind the 2021 mark, when the country had a score of 76 and was among the top twelve in the world. Since 2023, Georgia has remained below the 70-point mark, which is a setback compared to the high indicators recorded in the period 2012-2022.According to the components, the sharpest decline in the 2026 report was recorded in the protection of property rights - the indicator decreased by 9.3 points and amounted to 53 points. The indicators of judicial efficiency (-1.5) and tax burden (-1.3) also deteriorated. Experts attribute the deterioration of the positions to the decline in the quality of governance and restrictions on business freedom.In contrast, a significant increase was recorded in the direction of fiscal health (+13.2), where the country received 89.1 points. This improvement is associated with a decrease in the ratio of public debt to GDP.Key Index Criteria (2026): Fiscal Health: 89.1 (+13.2) Tax Burden: 87.8 (-1.3) Trade Freedom: 86.8 (+0.6) Business Freedom: 76.6 (-1.5) Monetary Freedom: 70.2 (+4.9) Property Rights: 53.0 (-9.3) Georgia Maintains Leadership in Regional Context: Armenia is 52nd with a score of 67.1 Azerbaijan is 67th (64.3) Turkey is 117th (55.0) While Russia is 145th (50.3) The 2026 Index is led by Singapore (84.4), Switzerland (83.7) and Ireland (83.3) are in. The last places in the ranking are shared by Venezuela, Cuba and North Korea (3.1 points).

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Foreign Direct Investments Increase by 7.6% to $1.68 Billion

According to preliminary data for 2025, the volume of equity capital amounted to $601.8 million, which is 15.3% higher than the revised figure for the previous year, while reinvestment is 3.8% higher than the revised figure for the previous year and amounts to $1.39 billion.According to preliminary data for 2025, the share of the three largest investor countries in total foreign direct investment amounted to 40.8%.The United Kingdom is in first place with 19.8%, Turkey is in second place with 10.7%, and Malta is in third place with 10.3%.According to Geostat, the share of the three largest sectors (in terms of foreign direct investment) in 2025 amounted to 56.8%.The largest volume of foreign direct investment was made in the financial and insurance activities sector and amounted to $607 million, which is 35.9% of total foreign direct investment. The second place is occupied by the real estate sector with $185.7 million (11%), and the third place is occupied by the transportation sector with $166.1 million (9.8%).The revised data for 2025 will be published on August 17, 2026, which may cause changes in the data for previous periods.

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Georgia Receives $391.7 Million in FDI in 4Q25 – 74% of which was in t...

According to preliminary data from Geostat, in 4Q25, the United Kingdom is in first place with $202.3 million, which is 51.6% of total foreign direct investment, Malta is in second place with $76.8 million (19.6%), and Azerbaijan is in third place with $38.7 million (9.9%).The share of the three largest investor countries is 81.1% of the total volume of investments.According to preliminary data from Geostat, in 4Q25, the largest amount of foreign direct investments was made in the financial and insurance activities sector and reached $289.8 million (74%). The second place is the construction sector with $33.1 million (8.5%), and the third place is the transport sector with $23 million (5.9%).The share of the three largest sectors (in terms of foreign direct investments made) amounted to 88.3%.The revised data for 2025 will be published on August 17, 2026, which may cause changes in data for previous periods.

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Batumi Residential Real Estate Market Grows 15% in 2025 – Galt & Tagga...

The total market value rose 23.8% year-on-year to reach $1.3 billion. Analysts attribute the growth to the launch of new large-scale projects and increased supply in the secondary market. Developer surveys covering around 40% of the primary market showed high buyer diversification.Foreign buyers accounted for 52% of sales, while Georgian citizens represented 48%. Among foreigners, Israelis and Europeans each made up 13%, Ukrainians, Russians, and Belarusians 11%, and Turkish and Central Asian residents 3% each.Galt & Taggart noted that Batumi remains attractive to international investors, with both transaction volumes and property prices continuing to rise.

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The Construction Cost Index Down By 4% In January

In detail:• The residential segment index decreased by 4.8 percent compared to the previous month and increased by 3.5 percent compared to the same month of the previous year;• The non-residential segment index decreased by 1.9 percent compared to the previous month and increased by 17.7 percent compared to the same month of the previous year;• The civil segment index decreased by 4.1 percent compared to the previous month and increased by 0.9 percent compared to the same month of the previous year.In January 2026 the Construction Cost Index (CCI) decreased by 4.0 percent compared to the previous month. The change was mainly due to a 24.5 percent decrease in average monthly nominal wages of employees in the construction sector, which contributed -4.38 percentage points to the total index change.Compared to January 2025 the CCI increased by 4.3 percent. The latter was largely caused by the 18.8 percent increase in average monthly nominal wages of employees in the construction sector and by the 4.8 percent increase in the category of other costs, which contributed 4.82 and 0.31 percentage points to the total index change, respectively. Along with this, the Construction Cost Index posted a 24.0 percent increase compared to February 2022.The following table presents the CCI in January 2026, compared to the previous month and the same month of the previous year, as well as the contributions of cost categories and segments to the total index.

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GNERC to revise electricity tariffs by end of March

According to him, the tariff set in December last year was temporary, as some parameters required additional study. These parameters are currently being refined."The regulatory agency set a temporary tariff for electricity in December last year, as certain parameters needed to be refined. These parameters are currently being refined," Narmania said.He said that the decision on the tariff change will be announced by the end of the month, although it is not yet known whether the tariff will increase for consumers.“As soon as it is clarified, we will make a relevant decision by the end of this month. It will be difficult for me to answer specifically what will happen to the tariff and how much it will increase, since the relevant work is still underway,” he explained.When asked whether the tariff will indeed be revised at the end of the month, Narmania confirmed that the commission will make a decision within this period.In December 2025, instead of the price increase announced for months, the Energy Commission of Georgia maintained the existing tariffs for three months (until March 31, 2026) in order to have time to clarify the energy balance, generation forecasts, company costs and investments.The regulator has not yet specified the scale or direction of the increase.

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ADB President: Bank Supports Georgia’s Ambition to Become a Regional G...

During the meeting, the parties discussed priorities for the bilateral partnership, including economic development and improving the quality of life for the population. Masato Kanda congratulated the Prime Minister on the country’s “strong macroeconomic parameters” and the completion of the Rikoti Pass highway.“This is an amazing project that supports regional connectivity,” the ADB President said, speaking about the Rikoti section.A key topic of the discussions was the Bank’s participation in the development of the “Middle Corridor.” The parties also addressed airport modernization and support for the tourism sector.Kanda emphasized that ADB is ready to assist Georgia in achieving its strategic ambitions related to the growth of the country’s transit and logistics potential in the Eurasian region, through innovative projects and financial instruments.

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ADB President Praises Georgia’s Reforms and Macroeconomic Management

According to Kanda, the meeting was “very productive” and highlighted the long-standing partnership between ADB and Georgia. Since joining the bank in 2007, Georgia has received nearly $6 billion in financial assistance, with ADB remaining one of the country’s largest development partners.“Encouraging to hear the significant results of Georgia's reforms and sound macroeconomic management – these are the best ‘insurance’ against external shocks,” Kanda wrote.The discussion also focused on strengthening Georgia’s position along the Middle Corridor through enhanced energy, transport, and digital connectivity. Innovative projects, including local currency financing, were highlighted as ways ADB is positioning itself as a leading development finance institution in Georgia.Kanda emphasized that the partnership will continue to support Georgia’s economic progress and improve the quality of life for all its citizens.

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