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Economics
Turkey and Azerbaijan Reach Long-Term Agreement for Natural Gas Transi...

Bayraktar added that the agreement includes the supply of 2.25 billion cubic meters of natural gas per year from the Absheron field in the Caspian Sea for a period of 15 years.The contract is set to take effect in 2029 and will remain in force until 2040.According to Bayraktar, the natural gas will be delivered to Turkey via the Baku–Tbilisi–Erzurum pipeline.In addition, Turkey has extended its gas supply contract with Russian Gazprom and previously announced plans to increase natural gas imports from the United States.

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Salaries of construction workers increased by 21%

In detail:• The residential segment index increased by 0.9 percent compared to the previous month and by 7.9 percent compared to the same month of the previous year• The non-residential segment index increased by 1.7 percent compared to the previous month and by 10.7 percent compared to the same month of the previous year• The civil segment index decreased by 0.4 percent compared to the previous month and increased by 0.9 percent compared to the same month of the previous yearIn November 2025 the Construction Cost Index (CCI) increased by 0.5 percent compared to the previous month. The change was mainly due to a 1.3 percent increase in average monthly nominal wages of employees in the construction sector, which contributed 0.43 percentage points to the total index change.Compared to November 2024 the CCI increased by 5.2 percent. The latter was largely caused by the 21.0 percent increase in average monthly nominal wages of employees in the construction sector and by the 4.8 percent increase in the category of other costs, which contributed 5.02 and 0.3 percentage points to the total index change, respectively.Along with this, the Construction Cost Index posted a 25.8 percent increase compared to February 2022.

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G&T: $3.1 Billion Worth of Apartments Sold in Tbilisi in 11 Months of...

In November 2025, 3,726 apartments were sold, according to Public Registry data. On the secondary market, sales rose 13.2% year-on-year (up 2.6% for the first eleven months), while primary market sales, affected by delayed registrations, fell 1.8% annually (but rose 5.1% over the first eleven months). Galt & Taggart’s real-time survey of developers indicated a slight 0.8% year-on-year drop in primary market sales in November; however, sales remained high, making it the fourth strongest month of 2025. In total, 37,930 transactions were registered in Tbilisi during the first eleven months of 2025, with a total apartment value of $3.1 billion, up 12.1% year-on-year.On the supply side, building permits were issued in November 2025 for 11 residential projects totaling 121,000 sq.m., a 32.2% year-on-year decline. Overall, the total volume of permits issued in the first eleven months of 2025 decreased 4% annually. Despite the decline, the volume of permits remains high relative to long-term averages.Regarding prices and rents, Galt & Taggart reported that in November 2025, the primary market saw monthly price growth of 1%, reaching $1,366 per sq.m. On the secondary market, prices for new projects built under permits issued since 2013 rose 0.9% month-on-month to $1,297 per sq.m. Meanwhile, rents for average-sized apartments (50–60 sq.m.) remained high at $10.1 per sq.m. per month, with yields at 8.9%.

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ICT Exports Surge 52.3% Year-on-Year in 3Q25 – Galt & Taggart

The ICT sector in Georgia is export-oriented, playing a significant role in the country’s service exports. In 2024, ICT exports totaled $842 million, representing 10.9% of total service exports. In 3Q25, ICT exports rose 52.3% year-on-year to $898 million, accounting for 14% of total service exports. The IT sub-sector was the largest contributor to this growth, with revenues reaching GEL 4.5 billion in 3Q25, more than double the same period in 2024, primarily driven by sharp export growth.The sector’s expansion is largely fueled by international companies, aided by tax incentives introduced in 2020. Geopolitical developments since 2022 have accelerated growth, with the relocation of international IT companies and specialists to Georgia, leading to a doubling of salaries between 2020 and 2024 and increasing the attractiveness of the sector for career-oriented professionals. Currently, over 12,000 students study IT across 21 universities in Georgia, highlighting a growing talent pipeline.However, as the supply of IT graduates increases, domestic demand for specialists on local employment platforms has weakened, partly due to the broad adoption of artificial intelligence (AI). At the same time, Georgian IT specialists are increasingly integrated internationally, with GitHub registrations from Georgia rising 22% year-on-year in 2024 to 138,300. Galt & Taggart emphasizes that adapting to global trends, enhancing specialization, and continuously upskilling the workforce—particularly in AI-related roles—will be critical for sustaining ICT export growth. Other advantages for the sector include relatively low internet costs and a favorable living environment, while improvements in mobile internet speeds in 2025 underscore Georgia’s potential for rapid technological development.

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Annual inflation in Georgia reached 4% in December 2025

Regarding core inflation, this indicator registered at 2.0% in December 2025 compared to the same period last year. Excluding tobacco, the annual core inflation rate was slightly lower, at 1.6%.The formation of the monthly inflation rate was primarily influenced by price movements across several key groups:Clothing and Footwear: Prices in this category fell by 1.9%, contributing -0.09 percentage points to the monthly inflation rate. Specifically, prices declined by 4.6% in the footwear subcategory and by 0.4% in clothing. Housing, Water, Electricity, and Gas: Prices decreased by 0.4%, resulting in a contribution of -0.04 percentage points to the overall monthly inflation. Notable declines were observed in actual housing taxes (-0.6%) and in the costs associated with current maintenance and repairs of housing (-0.3%). Transport: Prices in this group declined by 0.3%, adding -0.04 percentage points to monthly inflation. Price decreases were notable in vehicle purchases (-2.9%) and in expenses related to operating personal transport facilities (-0.6%).Conversely, prices for transport services increased by 2.7%. Health Care: Prices rose by 0.5%, contributing 0.04 percentage points to the monthly inflation. An increase of 1.0% was recorded in the prices of medical products, equipment, and devices,” reads the report published by GeoStat.

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GDP Grows 7.2% in November 2025 – GeoStat

The sectors that contributed most significantly to the growth in November included transport and storage, manufacturing, real estate activities, financial and insurance services, and mining and quarrying. These industries played a key role in driving the country’s overall economic expansion.Conversely, a declining trend was observed in the construction and energy sectors. These sectors showed weaker performance relative to the same period in 2024, slightly offsetting the overall growth.

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Cashless Spending on Pharmacy Purchases Up By 28% Through TBC Bank Cha...

The average spending per transaction reached 31 GEL.During the same period, cashless spending on personal hygiene products via TBC Bank channels grew 31% annually, with an average transaction value of 91 GEL.

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Georgian Wine Exports to the EU Grow by 13% in First Nine Months of 20...

Exports to the European Union continue to grow, rising 13% year-on-year in the first nine months of 2025. Prices for Georgian wine in the EU remain consistently higher than global averages and prices in Russia, with notable variation across countries. Germany and the Czech Republic command higher prices, while Poland remains a high-volume, lower-price destination.Russia continues to be Georgia’s main export market. In 2024, Russia accounted for 66% of total Georgian wine exports, with Georgian wine making up 26% of Russia’s total wine imports. Georgia has strengthened its position as a leading supplier to Russia, offering competitive mid-range products, though average import prices remain lower than those of Italy, Poland, and Latvia.Georgian wine exports are also steadily growing in Central Asia, with Uzbekistan emerging as a particularly fast-growing market. Georgia’s share in Central Asian wine imports remains stable, with export prices aligned with or below local market averages, further enhancing the appeal of Georgian wine in these rapidly expanding markets.

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Food Spending Dominates Cashless Transactions via TBC Bank in November...

The largest share of these cashless transactions was spent on food, which represented 25% of total cashless spending, followed by restaurants at 14%.Cashless spending on food grew by 23% annually, with an average transaction amount of 17 GEL. Meanwhile, inflation for food and non-alcoholic beverages reached 10% over the same period.The data highlights the continued importance of cashless payments for everyday consumer goods in Georgia, with food remaining the leading category for TBC Bank customers.

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Consultations Held on Georgia–GCC Free Trade Agreement

The Georgian delegation was led by Genadi Arveladze, Deputy Minister of Economy and Sustainable Development, while the GCC delegation was headed by Abdulraza Al-Raidi, Director-General for Free Trade Agreements. The parties discussed the FTA’s structure and key areas, including trade in goods, safeguard measures, rules of origin, sanitary and phytosanitary standards, and technical barriers to trade.According to Arveladze, the consultations were productive and conducted within agreed timelines. He emphasized that Georgia welcomes the start of FTA negotiations with GCC member states and considers the agreement mutually beneficial for both Georgia and the Council’s members.The Tbilisi meeting followed a Georgian delegation visit to Saudi Arabia on December 16, underscoring ongoing efforts to strengthen economic ties and advance the potential FTA between Georgia and the GCC.

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