95% of enterprises have access to the Internet

GeoStat highlights that, in April 2026, key sectors such as manufacturing, information and communication, transport and storage, trade, and financial and insurance activities all contributed significantly to this growth.Conversely, a downward trend was noted in the construction and mining sectors.

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In most cases, innovations in goods and services were developed independently by enterprises (69.1% and 61.5%, respectively). 65.2% of the implemented innovations were new for enterprises, while 34.8% were new to the market.82.5% of new or improved business process innovations by enterprises were developed directly by the enterprise, 23.8% - together with other enterprises or institutions, 23.6% resulted from the adaptation-modification of goods/services developed by other enterprises or institutions, and 18.5% were developed by other enterprises or institutions.When assessing economic activity strategies, 45.9% of enterprises gave high importance to focusing on high quality, 35.9% of enterprises give high importance to focusing on improving existing goods/services, and 36.6% of enterprises give high importance to focusing on satisfying existing customer groups.In addition, in the assessment of the business environment by Geostat, the main challenge was the increase in prices of goods and services, which leads to the loss of customers.

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The awards, presented at the regional forums “SPRING” and “PLUS-Forum Digital Uzbekistan,” highlight international recognition of the NBG’s initiatives aimed at fostering financial innovation and strengthening Georgia’s role as not only a logistical hub within the Middle Corridor, but also as a regional financial and technology hub.Both events are regarded among the most significant regional platforms, bringing together representatives of central banks, financial institutions, fintech companies, technology businesses, and international organizations. The forums focused on key topics including financial technologies, digital transformation, open banking, digital payments, cybersecurity, central bank digital currencies (CBDC), artificial intelligence, and regional cooperation.PLUS-Forum Digital Uzbekistan is considered one of the largest fintech and digital economy events in Central Asia. The forum convenes representatives from both the public and private sectors, banks, international payment systems, and technology companies, with a particular focus on promoting international cooperation and supporting innovative projects across the region.SPRING has also established itself as one of the leading innovation and technology platforms in the South Caucasus, focusing on financial technologies, startup ecosystem development, and regional connectivity.Within the framework of both forums, the Head of the Financial and Supervisory Technologies Development Department of the National Bank of Georgia, Varlam Ebanoidze, participated in panel discussions and working sessions addressing regional financial integration, open banking, digital payments, and innovation development.“For several years, the National Bank of Georgia has been actively promoting the development of open banking and open finance, the introduction of innovative financial services, the strengthening of the fintech ecosystem, and the digital transformation process. These awards underscore the NBG’s efforts in supporting innovation, developing modern financial infrastructure, and strengthening the country’s regional positioning. This recognition further confirms Georgia’s growing role in shaping a regional financial and technological hub. As an important part of the Middle Corridor, Georgia is increasingly positioning itself as a country that enhances financial, trade, and digital connectivity between Europe and Asia,” stated Varlam Ebanoidze.

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According to the ministry, during the syndication process, due to high demand, it became possible to reduce the yield of the securities in two stages and equalize it with the market price. The activity of non-resident investors at the auction amounted to GEL 850 million.As a result of the final allocation of treasury bonds with a maturity of 5.9 years, 65% of the total issue was distributed to non-resident investors, while the remaining 35% was purchased by local residents. In terms of geography, 76% of foreign investors are residents of the United Kingdom, 19% are residents of the United States, and 5% are residents of the European Union.By investor category, 64% of the issued bonds were purchased by international asset management companies, 24% by local insurance and pension funds, 11% by commercial banks, and 1% by international financial institutions (IFIs).The agency explains that the purpose of the aforementioned issue was to further develop the securities market, structurally diversify the investor base, and attract more non-residents to the market.According to the ministry, the aforementioned syndication was carried out within the framework of the annual net increase in domestic debt (GEL 1.8 billion) determined by the 2026 state budget. Accordingly, the aforementioned transaction will not result in attracting additional resources for the budget or an increase in domestic debt above the plan.

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The Notes are denominated in USD and are expected to settle on 3 June 2026. The Notes are being issued in accordance with Reg S/Rule 144A and priced at 99.475% of the principal amount.The transaction attracted strong investor demand across international institutional accounts, with the orderbook over 3x oversubscribed at peak during the execution. Interest on the Notes will be payable semi-annually.Citigroup and J.P. Morgan are acting as Joint Lead Managers and Bookrunners for the Notes, and JSC Galt & Taggart is acting as Joint Lead Manager. Sidley Austin LLP is acting as the legal advisor to the Joint Lead Managers in respect of English and United States federal law and Dentons Georgia LLC is acting as the legal advisor to the Joint Lead Managers in respect of Georgian law. Baker & McKenzie LLP is acting as the legal advisor to the Bank in respect of English and United States federal law and Andersen is acting as the legal advisor to the Bank in respect of Georgian law.The Notes are expected to be listed on the Irish Stock Exchange and are rated Ba2 by Moody’s Investors Service Ltd.

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Despite weaker visitor dynamics from Azerbaijan and Armenia, the main downward pressure on tourism revenue came from Russia and Israel, where revenues declined by 12% and 13% YoY, respectively. The impact of the Middle East conflict became visible in Israel-related dynamics, with Israeli visitor trips down 17.5% YoY. These losses were offset by stronger revenue growth from the EU and UK (+36%), Türkiye (+12%), and Ukraine (+34%), supporting a modest increase in total tourism revenue to USD 830 million (+0.5% YoY). Although the EU and UK ranked only fourth by visitor numbers, they were the largest revenue contributors, generating USD 141 million and highlighting significantly higher average spending per visitor compared to neighboring source markets. Large branded hotels also showed improved performance in 1Q 2026. Occupancy averaged 51%, up 6 percentage points YoY, while the Average Daily Rate (ADR) reached USD 129, increasing by 10% YoY. ADR was higher in all three months of the quarter compared to the same period of 2025.

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The NBG's report includes an overview of monetary, foreign exchange, and supervisory policies, as well as audited financial statements.In her report, Natia Turnava reviewed the main directions that guided the NBG in 2025. She began her speech by discussing the core objective of the NBG price stability and noted that the average annual inflation in 2025 amounted to 3.9 percent, while the indicators reflecting long-term inflation expectations, including core and services inflation, remained close to the target level."Despite global challenges and the impact of developments in the Middle East, inflation expectations are manageable, which was facilitated by the monetary policy implemented by the NBG. For this very purpose, in response to the current situation, in May 2026, we increased the monetary policy rate by 0.25 percentage points to 8.25 percent, so that once supply-side shocks dissipate, inflation can quickly return to the target level of 3 percent," stated Natia Turnava.The Governor of the NBG also focused on the positive trends regarding economic growth and macroeconomic stability."Despite severe geopolitical shocks, the Georgian economy maintains its resilience, and economic growth remains high. In 2025, the current account deficit narrowed to a historically low 2.6 percent of GDP, while foreign direct investment increased by 7.6 percent year-on-year to 4.4 percent of GDP. Strong macroeconomic fundamentals enabled us to significantly replenish international reserves. By the end of 2025, international reserves reached USD 6.16 billion, and in February 2026, they hit a historic maximum of USD 6.65 billion," noted Natia Turnava.Within the framework of the report, the Governor of the NBG also spoke about the measures taken to reduce financial dollarization, noting that as of April 2026, the dollarization of loans had decreased to 42.5 percent, and the dollarization of deposits to 46.6 percent.Natia Turnava drew attention to the resilience and profitability of the banking sector, noting that by the end of 2025, the credit portfolio of the banking system, excluding the exchange rate effect, had increased by 14 percent, while the return on equity amounted to 22.3 percent.During the report, the NBG Governor also discussed the measures implemented in the following areas: consumer rights protection, the development of the securities market, strengthening the supervisory framework of the pension fund, upgrading payment infrastructure, supervision of virtual asset service providers, and the development of financial technologies.According to her statement, in 2025, the NBG actively continued to deepen international cooperation at the regional and global levels, which is crucial for Georgia's positioning as a regional financial hub.Following the conclusion of the report, the Governor of the National Bank of Georgia answered questions from the Members of Parliament.

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According to her, this stability is also confirmed by the unchanged forecast of economic growth, while the maximum neutralization of the influence of external factors is constantly being carried out.The head of the NBG also spoke about the inflation dynamics and noted that the indicator of rigid prices remains close to the target of 3%. In addition, against the background of strong foreign exchange inflows, the GEL is characterized by a strengthening trend, which reduces the pressure of imported inflation."We assume that oil prices will remain within the current range. As a result, inflation will begin to decline from the third quarter of this year and return to the target of 3% during the next year," - said Natia Turnava.The President of the National Bank added that this forecast is conditional and significantly depends on external factors, although domestic macroeconomic parameters provide grounds for optimism.

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