Consumer loans are the fastest-growing

As Vesti.az reports, Berset stated that Europe’s geopolitical center is shifting eastward along the 39th parallel north, and this axis passes through four Council of Europe member states – Azerbaijan, Armenia, Georgia and Turkey.“Europe’s geopolitical center is shifting eastward, along the 39th parallel north. This axis passes through four member states,” Berset said.Georgia's Growing Role in European SecurityAccording to the Secretary General of the Council of Europe, Georgia, Azerbaijan, Armenia and Turkey are located at the intersection of several important geopolitical processes at the same time.According to him, these processes include the war in Ukraine, conflicts in the Middle East, as well as the ongoing political and economic changes in Central Asia, the scale of which Europe has not yet fully understood.In this context, Georgia's location is particularly important, as the country represents one of the important connecting links between Europe and the South Caucasus and participates in the transport, energy and trade processes taking place in the region.Relations between Baku and YerevanBerse also paid special attention to relations between Azerbaijan and Armenia.According to him, one year after the signing of the Washington Declaration, Baku and Yerevan have a real opportunity to turn the progress achieved into sustainable peace.In addition, he said, Armenia and Turkey have also taken steps towards normalizing relations.European security is unthinkable without TurkeyThe Secretary General of the Council of Europe also emphasized the special role of Turkey. Turkey is the most numerous state among the member states of the Council of Europe and has the second largest armed forces among NATO members.“A serious discussion on security, including democratic security, on this continent is impossible without Turkey,” said Berce.In his assessment, an agreement between governments alone is not enough for sustainable peace. This requires trust between societies, respect for human rights and the existence of institutions that can support the reconciliation process.Berce also warned the member states of the Council of Europe that the strength of the common European legal space depends on the equal observance of its norms by all states. He said that this also requires trust, transparency and the absence of double standards.

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The value of output produced by the business sector also increased. In Q2 2026, output totaled GEL 25.7 billion, up 10.7% compared with the same period last year.According to Geostat, large businesses accounted for 69.8% of total business-sector turnover in the second quarter, while medium-sized businesses accounted for 11.6% and small businesses for 18.6%.The distribution was different in terms of total output. Large businesses accounted for 48.6% of output, medium-sized businesses for 23.6%, and small businesses for 27.8%.Meanwhile, enterprises purchased a total of GEL 32.5 billion worth of goods and services during the reporting period, 4.9% more than in the second quarter of 2025. Purchases of goods and services intended for resale amounted to GEL 19.4 billion, up 9.3% year-on-year.The average number of people employed in the business sector reached 828,400 in Q2 2026, an increase of 4.1% compared with the same period last year. Women accounted for 43.8% of total employment, while men accounted for 56.2%.Large businesses employed 42.6% of the total workforce, medium-sized businesses 19.7%, and small businesses 37.7%.The total number of employees hired during the reporting period stood at 768,600, up 3.1% year-on-year. Total personnel expenses amounted to GEL 5.8273 billion, an increase of 10.3% compared with the same period of 2025.The average monthly salary of employees in the business sector reached GEL 2,471.5 in the second quarter, GEL 153.8 higher than a year earlier. The average monthly salary for women stood at GEL 1,944.9.By business size, average monthly salaries were GEL 2,622.8 in large businesses, GEL 2,918.9 in medium-sized businesses, and GEL 1,972.3 in small businesses.Arts, entertainment and recreation accounted for the largest share of business-sector turnover in Q2 2026, at 36.5%. Wholesale and retail trade, including the repair of motor vehicles and motorcycles, ranked second with 32.4%.Manufacturing accounted for 8.1% of turnover, followed by transportation and storage at 4.8%, construction at 4.8%, and information and communication at 3.4%. The remaining sectors accounted for 10%.In terms of total output, manufacturing held the largest share at 20.5%, followed by trade at 18%, construction at 14.4%, transportation and storage at 9.8%, and information and communication at 8.9%. Other sectors collectively accounted for 28.4% of total output.Trade employed the largest share of the business-sector workforce in Q2 2026, at 29.5%, followed by manufacturing at 11.3% and human health and social work activities at 9.1%.Transportation and storage accounted for 8.1% of employment, construction for 7.6%, information and communication for 6.4%, and accommodation and food service activities for 5.7%, according to Geostat.

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According to Geostat, the annual inflation rate was mainly influenced by price changes for the following groups: Transport: the prices for the group increased by 15.2 percent, contributing 1.81 percentage points to the overall index. Within the group the prices increased for operation of personal transport equipment (20.8 percent) and transport services (12.8 percent);Food and non-alcoholic beverages: the prices in the group increased by 5.0 percent, contributing 1.72 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: fish (18.1 percent), meat (9.8 percent), oils and fats (7.8 percent), bread and cereals (7.1 percent), vegetables (5.5 percent), coffee, tea and cocoa (5.4 percent), milk, cheese and eggs (2.9 percent), sugar, jam, honey, chocolate and confectionery (1.9 percent), mineral waters,soft drinks, fruit and vegetable juices (0.6 percent). At the same time, prices decreased for fruit and grapes (-6.1 percent);Housing, water, electricity, gas and other fuels: the prices for the group increased by 8.5 percent,contributing 0.82 percentage points to the overall index. The prices were higher for the subgroups of electricity, gas and other fuels (10.3 percent), maintenance and repair of the dwelling (8.7 percent) and actual rentals for housing (8.4 percent);Health: the prices increased by 5.2 percent, contributing 0.44 percentage points to the overall index. The prices were higher for the following subgroups: medical products, appliances and equipment (8.7 percent), out-patient services (2.4 percent).

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According to official figures, the agency recorded 1,758 formal applications during the first eight months of the year, while incoming telephone enquiries surged to 5,367, representing a 110 per cent year-on-year increase compared to the same period in 2025.During the reporting period, GCCA rulings confirmed 227 instances of group consumer rights violations across 516 individual cases. Due to non-compliance with binding obligations under the GCCA, 114 traders were penalised in 268 cases, incurring total fines of GEL 289,663. In addition, 134 conditional commitment agreements were signed across 151 cases in favour of consumers. Under these agreements, traders undertook binding commitments to amend their internal operating policies and restore the rights of consumers potentially affected by past commercial practices.E-commerce accounted for the vast majority of consumer grievances, with 69 per cent of submitted applications concerning online purchases, compared to 31 per cent for in-store transactions. Geographically, Tbilisi generated the largest share of complaints at 81 per cent, followed by regional submissions from Adjara (6%), Imereti (3%), Kvemo Kartli (2%), Kakheti (2%), and Samegrelo-Zemo Svaneti (2%).Broken down by the nature of consumer requests, 707 applications sought monetary refunds; 393 concerned the repair or replacement of defective goods, 431 concerned the restoration of rights over faulty services, and 227 covered other miscellaneous issues. By industry sector, wholesale and retail trade dominated the statistics at 67 per cent, followed by transport and storage (11%), arts, entertainment, and recreation (3%), and other commercial activities (19%).

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Over the past three months, 89.6 per cent of the population aged six and above used the internet, marking a 1.7 percentage point increase compared to the previous year. Usage stood at 92.9 per cent in urban areas and 83.9 per cent in rural communities, with virtually equal distribution between women at 89.7 per cent and men at 89.5 per cent. Across age demographics, usage peaked among 15-to-29-year-olds at 99.6 per cent. GeoStat noted that among internet users aged 15 and over, 96.4 per cent went online daily or almost daily, 3.4 per cent at least once a week, and 0.2 per cent less frequently.The survey revealed that the primary online activities for individuals aged 15 and over were dominated by social networking at 97.5 per cent and audio or video calling at 97.0 per cent. Internet banking was used by 61.0 per cent of respondents, followed by searching for health-related information at 54.5 per cent, researching goods and services at 50.2 per cent, and reading online news or publications at 49.0 per cent. Additionally, 41.7 per cent used the internet for email communications, 15.8 per cent for downloading software, and 11.5 per cent for job hunting or submitting applications.Over the past 12 months, 38.6 per cent of internet users aged 15 and over purchased or ordered goods and services online. E-commerce adoption stood at 42.7 per cent in urban settlements versus 31.0 per cent in rural areas, while usage among women reached 42.5 per cent compared to 34.2 per cent among men. By age group, online shopping was highest among 15-to-29-year-olds at 63.0 per cent, followed by those aged 30 to 59 at 39.9 per cent, and adults aged 60 and above at 17.5 per cent. Furthermore, connecting via wireless mobile devices was nearly universal, utilised by 99.8 per cent of active internet users over the last three months.Computer availability across households reached 57.9 per cent nationally, standing at 69.0 per cent in urban areas and 42.8 per cent in rural communities, with Tbilisi and Adjara leading regional figures at 74.1 per cent and 62.1 per cent respectively. Among individuals aged six and above, 49.9 per cent used a computer in the last three months, with the highest usage rate observed among children aged 6 to 14 at 89.3 per cent. Of these computer users, 70.0 per cent accessed a device daily or almost daily. Finally, mobile phone ownership among the population aged six and above rose by 0.7 percentage points to 93.3 per cent, reaching 95.2 per cent in urban areas and 90.1 per cent in rural regions.

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In addition, on the supply side, the residential area of ​​issued construction permits continued to increase. Despite the downward trend observed at the beginning of the year, the total area of ​​issued permits almost equaled the same period of the previous year. At the same time, an increasing trend in prices was observed in both segments: in the primary market, the rate of price growth accelerated, while in the secondary market, after stabilizing in previous months, prices began to increase again.DemandIn Jul-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 4,475 units, of which:• Sales on the secondary market increased significantly by 18.8% y/y to 2,294 (up 16.6% y/y in 7M26), reaching the highest monthly level after 2022.• Sales on the primary market, where data are impacted by delayed registrations, were up 24.4% y/y to 2,181 (up 19.9% y/y in 7M26).• Our real-time survey of developers, which captures current trends on the primary market, showed that number of apartments sold on the primary market increased significantly by 14.8% y/y. Cumulatively, the number of apartments sold on the primary market was up 30.1% y/y in 7M26. In total, 27,274 transactions were registered in Tbilisi in 7M26, bringing the residential market value to US$ 2.5bn (+27.3% y/y).SupplyIn Jul-26, the area of issued permits continued increasing, up 50.3% y/y (to 182,789 sq.m in 17 construction projects). Despite the earlier 8 consecutive months of declining trend, permit issuance rebounded over the last two months, bringing cumulative permitted living area in 7M26 broadly in line with the previous year, down just 0.3% y/y.PricesIn Jul-26, primary market price growth accelerated to 0.7% m/m, reaching US$ 1,426 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 2.0% m/m, reaching US$ 1,372 per sq.m.RentsIn Jul-26, price for renting an average (50-60 sq.m) apartment in Tbilisi remained high at US$ 10.1 per sq.m (+0.3% m/m), keeping rental yield high at 8.5%.

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According to the NBG, additional protective mechanisms apply in cases where a tax service provider (including a commercial bank, micro-bank, registered tax service provider and microfinance organisation) simultaneously reveals four circumstances: Payment transaction is associated with high-risk fraud activity; An unusual pattern of consumer spending and behavior is identified; The amount of the payment operation exceeds 500 GEL; The age of the customer is above 60. “In all the cases listed above, the payment service provider is required to suspend the execution of the electronic payment transaction initiated by the user for 48 hours, contact the user, and provide appropriate information regarding risks or potential fraud in a simple and understandable manner.The customer will have 48 hours to make the final decision. If the customer decides to continue the operation, he/she should confirm to the service provider.The amendment complies with the best international practice. A similar approach, namely, a mechanism for suspending high-risk transactions of a certain volume, is in place in countries such as the U.S., Canada, Brazil, the United Kingdom and EU member states,” the NBG said.

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According to the National Bank of Georgia, the GEL portfolio is 44 million, and the foreign currency equivalent is 31 million. The retail portfolio of banks has increased by 17.3% annually, including up to 20% in GEL, and +7% in foreign currency Y.Y.The volume of lending to the resident household sector is 40.63 billion GEL.As of 7m/2026, the larization ratio of total loans is 58.7% (7m/2025 - 58.06%).

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