PPI Increased by 7.1% y-o-y

The placement was conducted in the domestic market in accordance with local regulations and represents the second tranche of a USD 100 million issuance programme. The first tranche was successfully placed in February 2026.Key details of the Notes are as follows: Denomination: USD, with a face value of USD 10,000 per Note. Minimum Investment: A minimum purchase quantity of five (5) Notes. Term: The Notes are perpetual, with an option for the Bank to call them for early repayment after the fifth year. Coupon: An 8.0% coupon rate, payable semi-annually. Ameriabank CJSC acted as the arranger for the placement. The Notes will be listed on the Armenia Securities Exchange."Following the success of the first tranche, the second tranche of AT1 notes was also fully allocated well ahead of the planned timeline, further demonstrating Ameriabank's strong franchise value and the high level of investor trust in the Bank. The second tranche was placed at a yield to maturity (YTM) 50 basis points lower than the first tranche, reflecting robust investor demand. By further strengthening our capital position, this transaction enhances our financial resilience and provides greater capacity to support our growth”, - Hovhannes Toroyan, Ameriabank's CFO, commented.“This second AT1 issuance at a lower coupon rate underscores the market's confidence in Ameriabank's credit fundamentals and capital strength. The transaction enhances our financial flexibility and supports sustained growth across the Armenian market. I would like to thank the Ameriabank team for their excellent execution of this transaction”, - Giorgi Shagidze, Group CFO said.

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From May 19, the deadline for submitting the calculation of minimum reserves to the National Bank of Georgia has become June 18.According to central and commercial bankers, the reduction, which frees up $250 million for the sector, will not affect loans.It will potentially be transferred to deposits, although given the high deposit margins, it does not pose a risk of slowing the pace of larization.Moreover, the norm increased to 25% was already temporary, as it was announced when it was introduced (the purpose - to contain dollarization before the elections).According to the National Bank of Georgia statistics, as of June (01.06.2026), banks have 6.8 billion lari in deposits at the National Bank, of which 5.6 billion lari are required reserves.

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According to GeoStat, the sectors that made the most significant positive contributions to growth in the first quarter of 2026 were Information and Communication (36.0 per cent), Transport and Storage (18.0 per cent), Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (5.5 per cent), Financial and Insurance Activities (11.7 per cent), and Arts, Entertainment and Recreation (14.5 per cent).Conversely, the sectors that saw a notable contraction were Agriculture, Forestry and Fishing (-3.3 per cent) and Construction (-2.0 per cent).The agency’s report notes that within the sectoral structure of GDP, the largest shares were held by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (13.2 per cent) and Information and Communication (10.4 per cent). These were followed by Real Estate Activities (10.0 per cent), Manufacturing (8.2 per cent), Public Administration and Defence; Compulsory Social Security (7.2 per cent), Education (6.5 per cent), Construction (6.4 per cent), Transport and Storage (6.1 per cent), and Financial and Insurance Activities (5.9 per cent).

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GeoStat reports that domestic exports, excluding re-exports, accounted for 62.1 per cent of total exports. This figure increased by 66.1 per cent compared to the corresponding period of the previous year, reaching USD 1,929.1 million.According to the agency’s report, the share of the top ten largest countries constituted 66.9 per cent of Georgia’s total domestic exports in January–May 2026. In this regard, the largest export partners are China with USD 317.4 million, Russia with USD 229.0 million, and Turkey with USD 207.2 million.Information from GeoStat shows that petroleum and petroleum products ranked first at USD 352.2 million among the top ten domestic export commodities in January–May 2026. This commodity group’s share accounted for 18.3 per cent of total domestic exports. Precious metal ores and concentrates ranked second at USD 255.6 million, while ferro-alloys took third place at USD 130.8 million.

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In January-May 2026, the share of the ten largest export partner countries in Georgia's total exports amounted to 70.3%. The top three exporters were as follows: Kyrgyzstan - $355.2 million China - $327.5 million Azerbaijan - $269.3 million In January-May 2026, the share of the ten largest import partner countries in Georgia's total imports amounted to 70.9%. The top three include: Turkey - $1.16 billion Russia - $983.4 million China - $849.7 million In January-May 2026, the share of the ten largest trading partner countries in Georgia's total foreign trade turnover amounted to 66.5%. The country's largest trading partners are: Turkey - $1.38 billion Russia - $1.23 billion China - $1.17 billion In January-May 2026, the top ten export commodity groups were passenger cars with $734.6 million, which accounts for 23.6% of all exports. Second place is taken by oil and petroleum products with $366.6 million (11.8% of all exports), and third place is taken by precious metal ores and concentrates with $255.6 million (8.2%).The largest import commodity group in January-May 2026 was passenger cars, the imports of which amounted to $1.25 billion and 17.1% of all imports. Second place is taken by oil and petroleum products with $635.5 million (8.7% of imports), and third place is taken by medical products with $295.9 million (4% of imports).

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The award honors organizations that systematically integrate gender balance, diversity, and leadership into their corporate strategies and ensure effective implementation across all levels of the organization.It aims to highlight best practices in companies where equality and diversity are recognized as key drivers of business growth and effective management, and where progress is guided by data, accountability, and a long-term strategic vision.“International recognition once again underscores that promoting gender equality and diversity is an integral part of TBC’s strategy. Our ESG strategy clearly defines the key priorities and areas of focus in sustainability and is reinforced by comprehensive policies and procedures, including the Human Rights Policy and the Diversity, Equality and Inclusion Policy. We are committed to fostering a healthy and equitable workplace where every employee is empowered to reach their full potential. We believe that diverse teams are fundamental to building an innovative and sustainably growing organization”, - Maka Bochorishvili, ESG Coordinator at TBC.The “Balance in Business Awards” competition, established in 2018 by INSEAD Alumni, promotes awareness of the importance of gender balance and diversity in business, while encouraging the exchange of practical tools and best practices among organizations.Each year, the initiative brings together leading companies demonstrating excellence in advancing gender balance, recognizing their progress, strategic vision, and results-driven initiatives.

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The panel also featured Aleš Michl, Governor of the Czech National Bank, and Zoltán Kurali, Deputy Governor of the Central Bank of Hungary.During the session, the panelists examined the impact of geopolitical developments on central bank operations, monetary policy implementation, and international reserve management. Key focal points included reserve diversification strategies, emerging trends in stablecoins and Central Bank Digital Currencies (CBDCs), as well as the opportunities and challenges associated with the deployment of Artificial Intelligence (AI).As part of her working visit to London, Vice-Governor Jeladze also held bilateral meetings with representatives from various European central banks. Discussions centered on opportunities to enhance professional cooperation across central banks, current challenges in banking supervision and regulatory frameworks, and the practical application of emerging technologies, notably AI.The Central Banking Annual Meetings convene representatives from central banks, international financial institutions, and the broader financial sector. The event stands as a premier international platform for exchanging professional expertise and deliberating on pressing industry topics.

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In May, annual inflation stood at 5.7 percent. The increase in inflation relative to the 3 percent target was mainly driven by a significant increase in energy resources prices. These inflationary pressures mainly reflect external factors, including elevated volatility in international energy prices and supply-side disruptions. At the same time, measures of relatively sticky prices, which better reflect long-term inflation expectations, have shown a slight acceleration in the recent period. In particular, core inflation (excluding food, energy and tobacco) stood at 3.5 percent in May, while services inflation was 3.8 percent. Although these indicators remain significantly below headline inflation, their recent dynamics continue to point to risks of strengthening second-round effects. On the other hand, international commodity markets have recently experienced a notable correction in energy prices. Amid growing optimism regarding the prospect of a peace agreement between the US and Iran, international oil prices have declined significantly from their peak levels. This is consistent with the NBG’s central scenario. In particular, the central scenario assumed that strong pressure on inflation caused by the external shock would occur in the second quarter of this year, after which its impact would gradually ease. Therefore, according to the central scenario, inflation will continue its downward tendency from the second quarter of 2026 and will average 4.9 percent in 2026, and will gradually return to the target in the medium term.Economic activity remains strong. The economy grew by 6.2 percent in April 2026, while average growth in the first four months of the year reached 8.3 percent. Notably, high-productive sectors remain a key driver of economic growth, partially offsetting demand-side inflationary pressures.Global uncertainty remains elevated. The main sources of this uncertainty remain the further evolution of the ongoing conflict in the Middle East, developments in international energy prices, and the timeline for the restoration of damaged infrastructure. Therefore, the MPC, in addition to the central scenario, considered both high and low-inflation risk scenarios.In the event of the realization of the high-inflation risk scenario, fundamental processes require a higher trajectory of the monetary policy rate than the central scenario. The high-inflation scenario assumes a further escalation of geopolitical tension over a prolonged period, which would result in additional damage to infrastructure and a delay in the recovery process. Against this backdrop, commodity prices in the international market will increase further and the disruption of supply chains will become widespread. As a result, the supply-side inflationary shock would amplify in Georgia, strengthening second-round effects, and ultimately inflation would be higher than in the central scenario.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster normalization of monetary policy rate compared to the central scenario. The low-inflation risk scenario assumes that a peace agreement in the Middle East would lead to an immediate stabilization of prices at international commodity markets. In such a case, pressures on energy prices would ease rapidly, which would be reflected in lower domestic inflation. At the same time, Georgia’s external position remains robust. Despite the significant external shock, FX inflows continue to be strong, while the country’s sovereign risk premium remains low, supporting the stability of the real effective exchange rate. Moreover, the continued relative weakness of the U.S. dollar in global markets serves as an additional supportive factor. If these conditions persist, imported goods inflation is likely to be lower than expected, and, as a result, headline inflation will converge to the target more rapidly than in the central scenario.As a result of the ongoing macroeconomic analysis and consideration of existing risks, the MPC considered it appropriate to keep the monetary policy rate unchanged at 8.25 percent. The NBG continues to closely monitor ongoing developments and the intensity of their transmission to the domestic market. If inflationary shocks stemming from geopolitical tensions become even more prolonged and/or their magnitude would amplify the risks of second-round effects, the MPC will continue to moderately increase the monetary policy rate. Thereafter, once the inflationary shock dissipates, the NBG will begin a gradual normalization of the policy stance.The next meeting of the Monetary Policy Committee will be held on July 29, 2026.

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