Economic Dynamics and ConsumptionAccording to the document, electricity consumption in the country generally follows the growth rate of GDP, although there are exceptions: 2025: Against the backdrop of 7.5% economic growth, consumption increased by only 3.5% 2024: With a GDP growth of 9.7%, energy consumption growth amounted to 6% State support and investmentsThe study draws attention to the fact that 94% of power plants built in Georgia in recent years were implemented through state incentive mechanisms. According to analysts, the introduction of the Contract for Difference (CFD) mechanism has significantly increased investor interest in the sector.Despite the new mechanisms, the largest capacity, 36 MW, was built in the country under the terms of a Power Purchase Agreement (PPA).Generation structureAs of today, the total installed capacity of the Georgian power system is approximately 4,800 MW. The generation sources are distributed as follows: Hydroelectric power plants (HPPs): 3,500 MW Thermal power plants: 1,200 MW Renewable energy (solar and wind): up to 50 MW According to Galt & Taggart, the share of solar and wind power plants in the overall portfolio is still critically low, indicating untapped potential in this area in the context of regional energy security.

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The value of export increased by 21.1 percent reaching USD 2,44 billion, while the import decreased by 4.9 percent and amounted to USD 5.69 billion.The trade deficit equaled USD 3,25 billion and its share in trade turnover constituted 40%.

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GeoStat also reports that Georgian residents made a total of 328,800 tourist visits abroad, a 1.7 per cent increase compared to the first quarter of the previous year.The largest share of visits, 46.7 per cent, was made by residents aged 31 to 50, with women accounting for 45.6 per cent of all visits.The agency’s report reveals that the most common purpose for visits in the first quarter of 2026 was to visit friends or relatives, accounting for 35.3 per cent of trips. The most popular destinations were Turkey and the Russian Federation, with 172,400 and 89,300 visits, respectively.Additionally, GeoStat notes that the average duration of visits was 6.8 nights, a 1.4 per cent increase compared to the first quarter of 2025 (6.7 nights). Remarkably, 99.1 per cent of these visits were repeat trips.Expenditure during these visits reached 629.1 million GEL, a significant 30.7 per cent rise from the same period in 2025. The average spend per visit also increased by 26.9 per cent, amounting to 1,267.7 GEL.

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In detail: The residential segment index increased by 0.4 percent compared to the previous month and by 0.2 percent compared to the same month of the previous year The non-residential segment index increased by 2.1 percent compared to the previous month and by 3.2 percent compared to the same month of the previous year The civil segment index increased by 3.2 percent compared to the previous month and by 3.3 percent compared to the same month of the previous year In March 2026 the Construction Cost Index (CCI) increased by 1.9 percent compared to the previous month. The change was mainly due to a 7.7 percent increase in the transportation, fuel and electricity cost category, which contributed 0.94 percentage points to the total index change.Compared to March 2025 the CCI increased by 2.0 percent. The latter was largely caused by the 2.7 percent increase in average monthly nominal wages of employees in the construction sector and by the 4.3 percent increase in the cost category of transportation, fuel and electricity, which contributed 1.35 and 0.62 percentage points to the total index change, respectively.Along with this, the Construction Cost Index posted a 26 percent increase compared to February 2022.

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As of project director Eric Bates, the main parameters of the work are as follows: Extraction: A total of almost 6 million cubic meters of soil is planned to be removed, which is a large-scale task for the company. Breakwater construction: Preparations are underway to install a 1,380-meter-long breakwater. The construction should be completed by the end of next year. Operational efficiency: The completed infrastructure will ensure 95% of the port’s annual openness, which will allow the port to receive and service large ships. According to Eric Bates, the Anaklia project will be a significant stimulus for the Georgian economy. The entire maritime infrastructure project should be completed by the end of next year.Belgian Jan De Nul N.V. is a member of the European so-called “Big Four” company, which is carrying out the design and construction of the harbor deepening and breakwater in Anaklia.

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Current status of the project and main technical characteristics: Marine works: The seabed in the port’s water area will be deepened to 17.5 meters. Breakwater: A 1,380-meter-long breakwater will be constructed, ensuring 95% annual port operability. Mobilization: A concrete plant has already been installed on site and the production of special protective structures - “X-blocks” is underway. Infrastructure development is part of a multimodal transport system. In the near future, the following are planned: Construction of a highway connecting the port. Construction of an 18-kilometer railway line, which will be integrated into the 10-year modernization plan of the Georgian Railways. A press release issued by the Ministry of Economy states that the strategic goal of the project is to increase the throughput capacity of the “Middle Corridor” and establish Georgia as a regional logistics hub. A company that is a member of the European so-called “Big Four” is involved in the construction process, which is a guarantee of compliance with international standards.According to the Ministry of Economy, the emphasis within the project is on employment of the local population.Heads of the Ministries of Economy and Defense, as well as directors of the Georgian Railways and Anaklia Sea Port, got acquainted with the progress of the construction on site.

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The company’s General Director, Lasha Abashidze, presented the annual report at an event held at the Paragraph Hotel. According to him, the total savings as a result of strategic changes exceeded 230 million GEL.Financial sustainability and growth in marginsAccording to the report, the operating profit margin of Georgian Railway has improved significantly and reached 36% (in the first half of 2025 this indicator was 25%). The dynamics of revenue growth is also stable: in the first four months of 2026, a 15% increase was recorded compared to the same period in 2025.“We reduced operating and administrative expenses, optimized personnel and reviewed contracts. We had a fairly productive year for the company,” noted Lasha Abashidze.Strategic optimization and digital transformationThe increase in the company’s efficiency was driven by several key factors: Lease optimization: the lease on 400 units of wagons was canceled. Infrastructure savings: The amount saved on tunnel works amounted to approximately 13 million GEL. Direct communication: A direct connection was established with container cargo owners. Special attention was paid to regional cooperation. As a result of negotiations with China, Kazakhstan and Azerbaijan, the digitalization of services reduced the time of border procedures by 7.5 times - from 15 hours to 2 hours.

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As Kobakhidze told reporters, the government is currently conducting active negotiations with potential investors, although details will be announced later.“We are focused on the investor. The main thing is that Anaklia Port will be built and the state will receive maximum profit from this project… Anaklia Port will be built in all cases and will serve the further development of our country’s transit function,” the prime minister noted.The Anaklia Deepwater Port project is one of the most ambitious geopolitical and economic initiatives in the history of Georgia’s independence. Its idea is based on the country’s strategic location and aims to transform Georgia into a key link in the “Middle Corridor” connecting China and Central Asia with Europe. Unlike traditional ports, Anaklia’s main advantage is its depth, which will allow the country to receive large-capacity, so-called Panamax-type ships for the first time in history.The active phase of the project began in 2016, when the Anaklia Development Consortium (ADC) won the tender. The consortium, headed by Mamuka Khazaradze and Badri Japaridze, included TBC Holding Anaklia, American Conti International, Dutch Van Oord PPP International, British Wondernet Express, Bulgarian G-Star, and investor Bob Meyer.

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According to the amendments to the “Law on Vine and Wine”, from May 1, 2026, the cultivation of an entrepreneurial vineyard will be possible only with the prior consent of the National Wine Agency. The initiators of the reform aim to protect the reputation of Georgian wine in the global market, where competition is growing.Songulashvili noted that the state will not allow any compromises regarding counterfeit products.“We will be very strict, radical and uncompromising in dealing with wine counterfeiting. The entire agency is working in this direction... Not a month goes by without control purchases being carried out in both restaurants and chain markets, and we have had numerous cases of counterfeit products being seized, removed and confiscated,” the minister said.According to him, quality control is crucial because Georgia, as a small-land country, cannot compete in quantity on the international stage: “Our main goal is quality. ‘Georgian’ should be a quality mark for all products.”In order to revitalize the sector, this year the state is further tightening the conditions for receiving grapes based on sugar content. According to the minister, products with low sugar content will no longer be included in the production of quality wine.“We categorically say that grapes up to 17 degrees will be sold for 30 tetri, because this cannot be used in the production of quality wine. Where the state is responsible, quality will be strictly controlled and the winegrower will receive compensation according to his labor and the quality of the product,” Songulashvili noted.Levan Mekhuzla, the chairman of the National Wine Agency, explained that under the new law, winegrowers must submit a laboratory analysis of the soil to obtain a permit to cultivate vineyards. One of the main criteria is the groundwater level - the water level should not be less than 1 meter.According to Mekhuzla, the reform aims to correct past mistakes, when vineyards were built in swamps or at inappropriate heights only to increase the number.“The reform insures both the investor and the consumer, taking into account the objective conditions when wine consumption has decreased and competition has increased in international markets,” Mekhuzla added.The agency will be authorized to refuse to issue a permit to cultivate a vineyard if the submitted documentation or soil conditions do not meet the established high standards.

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According to the commission, the Georgian fuel market is significantly dependent on imports from Russia, Bulgaria, Romania and Azerbaijan. This concentration makes the market vulnerable to geopolitical fluctuations, sanctions and logistical disruptions.During the same period, the combined market share of the five largest companies was 67.3%, indicating an average concentration.In March-April 2026, amid tensions in the Middle East and global energy risks, fuel price increases in Georgia accelerated significantly: The price of gasoline (regular and premium) increased by 10.8%–14.4% The price of diesel increased by 20.1%–23.8% According to the Commission’s analysis, reducing excise duties on fuel will not be an effective mechanism for reducing prices, as it is already low compared to European countries. In order to ensure price stability, the Commission rejects administrative control and focuses on market liberalization.The main recommendations outlined in the conclusion are: Diversification of supply: expanding the range of import sources. Inventory Management: Improving the strategic reserves management system. Logistics: Optimizing the supply chain and gradually introducing self-service models to reduce costs. “Fuel price stability in Georgia is achieved more through enhanced competition, security of supply, and market transparency than through administrative price control,” the parliamentary commission document states.

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