Turnava: Capital market grew by 30%

Retail loans amounted to GEL 10.52 billion at the end of 1Q25, which is +20.1% y.y and +3.1% q.q, and the share of retail loans in the total portfolio amounted to 43.7%. Among them: Mortgage loans amounted to GEL4.60 billion, which is +12.7% y.y and +2.2% q.q; Consumer loans – GEL 5.19 billion, y.y +29.8%, and q.q +4.0%; Other retail loans – GEL 733.5 million, y.y +7.2%, and q.q +2.2%. Small and medium-sized enterprise (SME) loans amounted to GEL 5.11 billion at the end of 1Q25, which is y.y +9.8%, and q.q +2.1%. Meanwhile, the share of SME loans in the total portfolio amounted to 21.3%.Corporate and investment banking (CIB) loans amounted to GEL 8.42 billion at the end of 1Q25, which is y.y +24.9%, and q.q +1.1%. The share of CIB loans in the total portfolio was 35%.The Corporate Center portfolio was fully liquidated (GEL 0) at the end of 1Q25, compared to GEL 5.9 million in 1Q24.

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In January-April 2025 the share of the top ten trading partners by domestic exports in the total domestic exports of Georgia amounted to 68.9 percent.The top partners were: Russia (USD 173.4 million) Türkiye (USD 87.9 million) China (USD 77.8 million). In January-April 2025 Precious metal ores and concentrates reclaimed the first place in the list of top domestic export items, equaling USD 96.3 million, or 10.7 percent of total domestic exports. The domestic exports Wine of fresh grapes totaled USD 71.5 million and their share in the total domestic exports amounted to 7.9 percent. The domestic exports of Spirituous beverages occupied the third place, standing at USD 63.6 million and constituting 7.1 percent of the total domestic exports.

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The negative trade balance was USD 3,72 million in January-April 2025 and its share in external trade turnover constituted 48.1 percent.In January-April 2025 the share of the top ten trading partners by exports in the total exports of Georgia amounted to 80.2 percent.The top partners were : Kyrgyzstan (USD 450.0 million) Kazakhstan (USD 258.4 million) Azerbaijan (USD 215.1 million) In January-April 2025 the share of the top ten trading partners in the total external trade turnover of Georgia amounted to 69.9 percent.The top trading partners were: Türkiye (USD 914.3 million) USA (USD 902.0 million) Russia (USD 859.1 million) In January-April 2025 motor cars claimed the first place in the list of top export items, equaling USD 753.9 million with 37.4 percent of total exports. The exports of precious metal ores and concentrates totaled USD 96.3 million and their share in the total exports amounted to 4.8 percent. The exports of spirituous beverages occupied the third place standing at USD 76.5 million and constituting 3.8 percent of the total exports.The largest import commodity group in January-April 2025 was represented by passenger cars, the imports of which amounted to $966.4 million and 16.8% of all imports. Pictures, drawings and pastels (hand-made) are in second place with $481.1 million (8.4% of imports), and petroleum and petroleum products are in third place with $396.5 million (6.9% of imports).

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According to Turnava, inflation remained low and stable throughout the year, primarily due to domestic economic factors and consistent monetary policy.“In 2024, inflation averaged 1.1 per cent, while core inflation—excluding volatile food, energy, and cigarette prices—stood at 1.6 per cent. This stable low inflation was mainly driven by domestic factors and the National Bank’s consistent policy, which kept long-term inflation expectations near the target,” she said.Turnava emphasised that monetary policy played a key role in maintaining price stability.“Alongside strong demand, the improved production capacity of the economy supported robust economic growth. Real GDP growth reached 9.4 per cent in 2024. Additionally, the GEL’s effective exchange rate remained relatively stable, further contributing to the low inflation environment. Fiscal policy also played a significant role,” she noted.She highlighted the importance of supporting high-productivity sectors such as IT, innovation, logistics, transport, and construction.“Despite high economic growth in recent years, price stability was preserved—an achievement rare among countries. This outcome reflects the effectiveness of a comprehensive economic policy framework, with monetary policy playing a central role in maintaining low inflation in 2024,” Turnava concluded.

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According to the Minister, the event provided investors with valuable insights into Georgia’s economic landscape and investment opportunities. Khutsishvili emphasised the importance of fiscal policy and discipline in driving the country’s economic development.He presented Georgia’s macroeconomic and fiscal indicators, medium-term forecasts, and outlined major ongoing and planned investment projects, along with key structural reforms.“Interest in the Georgian economy is high and spans both financial and non-financial sectors. Georgia stands out globally, having achieved one of the highest economic growth rates over the past four years. All major indicators position the country as a highly attractive destination for investment,” the Minister noted.The forum brought together over 180 representatives from international investment companies and groups.

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The digital bank serves domestic and international transfers, mainly in EUR/GEL/USD. Hash Bank accounts and cards (Hash Card) are multi-currency.The digital bank is represented by passive operating activities. Total liabilities are within 800,000 GEL.

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Specifically, 4.02% was acquired directly, and an additional 1% was acquired through financial instruments, including contracts for difference (CFDs) and a share lending facility.As a result, BlackRock’s holding in common voting shares was determined at 5.02%, which is equal to 2,827,737 shares.A contract for difference (CFD) is a financial instrument that allows an investor to benefit from fluctuations in the price of an asset, without actually owning the share. The investor enters into a contract to cover the difference in price based on the change in value.BlackRock is the world's largest asset management company, managing trillions of dollars of capital in global markets. The company plays a significant role as an institutional investor and a partner to large corporations.The transaction closed in London on May 12, 2025.

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In April, up to 40 million USD were transferred from the occupying country, and their share in total flows decreased to 13.5% (04/2024 – 17.6%; 04/2023 – 43%; 04/2022 – 43.2%) In total, 295.5 million USD entered the country, including $133 million from the EU countries.Investment bankers expect an increase in foreign exchange inflows. This is complemented by new business directions, the potential of which has increased after the recent challenges, including digital technologies, logistics.The expectation of maintaining the pace of cash inflows is supported by the EU candidate status, despite the fact that the GD government has suspended the integration process, and the population is experiencing a lack of Western education.According to the statistics of the National Bank of Georgia, the share of remittances from EU countries in transfers has increased annually by 14% to 45%. And from the US by 17% to 18.3%.

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