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Economics
Average Monthly Nominal Earnings Increased To GEL 2,466

According to the economic activity, the highest monthly earnings were observed in the following sectors: Information and communication – 4 373.2 GEL (increased by 9.1 percent compared to the corresponding period of the previous year) Construction – 3 938.9 GEL (increased by 17.2 percent) Financial and insurance activities – 3 747.7 GEL (increased by 11.1 percent) Mining and quarrying – 3 386.5 GEL (increased by 31.8 percent) In 4Q2025, the average earnings for women equaled 1 952.5 GEL, while for men, they were 2 978.9 GEL. The annual earnings growth amounted to 173.9 GEL (9.8%) for women and 325.1 GEL (12.2%) for men. In almost all sectors, men’s average monthly earnings exceeded those of women.In 4Q2025, the average monthly earnings of employees in the business sector increased by 241.3 GEL (10.2%) and equaled 2 608.4 GEL. According to the economic activity, the highest monthly earnings were observed in Information and communication (4 433.4 GEL, increased by 8.7 percent compared to the corresponding period of the previous year) and Construction (3 943.4 GEL, increased by 17.2 percent).In 4Q2025, compared to the same quarter of the previous year, the average monthly earnings of employees in the non-business and financial sector increased by 254.8 GEL (13.0%) and amounted to 2 210.2 GEL. According to the economic activity, the highest monthly earnings were observed in the Financial and insurance activities.Tbilisi and the Mtskheta-Mtianeti region lead in terms of average monthly earnings.

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Georgia’s Fruit Yields Are Two Times Less Than The EU Average – Galt &...

The study shows that Georgia’s per-hectare yields for fruits, vegetables and grains are lower than those of neighboring countries and the EU.For example, Georgia’s fruit yield is only 4.8 tons per hectare, which is more than two times lower than Armenia (11.4 tons), Ukraine (11 tons) and the EU (11.7 tons).The difference is even more striking in the case of vegetables - the average yield in Georgia is 11.1 tons, while in Azerbaijan - 31.1 tons, in Armenia - 35.6 tons, and in Turkey - 42.3 tons. As for grain crops, Georgia (2.8 tons) here also lags behind both Azerbaijan and Turkey (3.4 tons), as well as Ukraine (5.1 tons) and the European Union (5.2 tons).The Galt & Taggart review emphasizes that the low yield is due to several fundamental factors, including low corporatization, lack of knowledge and technological backwardness. The share of business in the sector is only 13%, and the production of raw materials is mainly concentrated in households.Land fragmentation is also a problem - 73% of farms in Georgia are less than one hectare, 25% have an area of 1 to 5 hectares, and large farms, the size of which exceeds 5 hectares, make up only 2%. For comparison, in Azerbaijan and Armenia the share of farms smaller than one hectare is relatively lower (60-61%), which creates the basis for more efficient use of land in these countries.

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Committee supports 3-fold increase of excise duty on cars older than 6...

New tariffs and categoriesThe main essence of the changes is to change the principle of taxation of cars by age group: 0 to 6 years inclusive: the excise duty rate is set at 1.5 GEL per 1 cm³ of engine capacity. Over 6 years of age: the excise duty rate is tripled and becomes 4.5 GEL per 1 cm³. In addition, the benefits for hybrid vehicles (a tariff reduced by 60% of the basic rate) will be maintained, and the basic rate for right-hand drive vehicles will also be tripled.Transitional period and deadlines1. The draft law provides for preferential conditions for those who have already started the process of importing a vehicle:2. The old tariff will be used by those whose vehicle will enter Georgia before April 1, 2026, or whose transportation to a foreign country will begin before this date.In the case of land transportation (or when moving on one's own), the old rates will apply if the vehicle enters the territory of the country before July 1, 2026.Why is the legislation being changed?The authors of the initiative are the deputies of the Georgian Dream. According to them, the existing system failed to stimulate the renewal of the car fleet, as the low excise tax on 6-8-year-old cars made their import economically advantageous.“A large part of the cars imported into Georgia are over 6 years old, which causes air pollution and increases the risk of road accidents. The goal of the change is to create a stable environment for the import of new cars and establish an effective financial barrier to restrict older vehicles,” the explanatory note to the bill says.Despite the support of the committees, the initiative was sharply criticized by Dimitri Khundadze, a member of parliament from the People’s Power party. According to him, the proposed tariffs are not “restrictive” but “prohibitive,” which will have the opposite ecological effect.Khundadze cited the following as his main arguments: Aging of the vehicle fleet: According to the MP, since a large part of society cannot afford to buy a new car, they will be forced to artificially extend the service life of existing old cars, which will lead to even greater aging of the vehicle fleet. Social factor: Khundadze notes that, unlike Tbilisi, public transport in the regions is not organized and a car is not a luxury there, but the only means of transportation. A blow to re-export: The changes may also negatively affect the re-export sector, which is one of the leading directions for the Georgian economy. Technical inspection instead of age: The MP believes that age alone cannot be decisive and it is necessary to improve the technical inspection tool - if the car is technically sound, its ban is unjustified.

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With the current trajectory, we anticipate a market of 30 billion GEL...

The Prime Minister also focused on the results of the agro-credit subsidy program and noted that the total output of the sector has almost doubled since 2018. As for foreign trade, exports currently amount to 4.5 billion GEL, although the fact that this volume is based on only a few product categories remains a challenge.According to Irakli Kobakhidze, despite the growth, the country is still significantly dependent on imports for meat, dairy products and grains. The main task of the state and the private sector remains to increase production productivity, expand the export range and establish itself in new, highly cost-effective international markets.

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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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