Within the framework of the two-day working meetings, representatives of the National Bank of Georgia introduced their colleagues to the experience of implementing the project to upgrade the real-time settlement (RTGS) and clearing (ACH) systems, which was successfully completed in May of this year. Special attention was paid to the project planning and management process, system architecture, operational and functional model, coordination with the participating banks and the Treasury Department of the Ministry of Finance, testing stages and the process of launching the system in a real environment.During the meetings, the parties discussed future directions for the development of payment systems. Among them, the introduction of an instant payment system (IPS), ensuring 24/7 operation, the use of the ISO 20022 standard and other development opportunities.Representatives of the National Bank of Georgia shared with the guests the experience gained during the project implementation process, the main challenges and the approaches used to solve them. They also presented important examples and recommendations that may be useful in the planning and implementation of infrastructure projects of a similar scale.The visit was carried out within the framework of the existing cooperation between the central banks of Georgia and Armenia and aimed to share knowledge and best practices, which will contribute to the development of modern, safe and efficient payment systems in the region.

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During the reporting period, Georgian wine exports to Russia decreased by 6.6% ($11.98 million). Nevertheless, the occupying state still remains Georgia's undisputed first market with $170.67 million, which accounts for 63.7% of total export revenues.In parallel with Russia, significant decreases were recorded in the markets of the USA (-17.4%), Kazakhstan (-10.4%) and the UK (-7.6%). The value of exports to the United States decreased from $7.15 million to $5.9 million, which is why it moved to eighth place in the ranking and fell behind Germany ($5.94 million, +1.1%).Amid the decline in traditional markets, Georgia recorded an increase in exports to several destinations in the European Union and Asia.Poland ($16.98 million, +2.3%), Ukraine ($13.39 million, +7.5%) and China ($9.83 million, +6.1%) consolidated their positions in the top ten export partners. Double-digit percentage growth was recorded in Belarus (19.7%) and Latvia (16.5%).Particularly high growth dynamics, albeit with relatively small volumes, are distinguished by France (+63.1%), Norway (+66%), Uzbekistan (+65.4%) and Bulgaria (+65.7%).In the reporting year, the sharpest growth, 110.1%, was recorded in the Austrian market, where the export figure increased to $0.30 million.

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The increase was observed in the production value of the business sector as well. In the I quarterof 2026, production value equaled 23.3 billion GEL, which is 12.4 percent more year-on-year.In the I quarter of 2026, total purchases of goods and services carried out by enterprises equaled 29.5 billion GEL (year-on-year 2.5 percent more), while the purchase of goods and services for resale amounted to 17.9 billion GEL (year-on-year 4.0 percent more).In the I quarter of 2026, the average number of persons employed in business sector equaled 799.4 thousand, which is year-on-year 3.7 percent more. Out of the total number of persons employed, 44.2 percent were female and 55.8 percent were male.Large businesses employed 43.6 percent of total number of persons, while 19.4 percent were employed by medium, and 37.0 percent - by small businesses.The total number of employees amounted to 743.7 thousand (year-on-year 3.5 percent more) and the total personnel costs of enterprises equaled 5 319.0 million GEL (year-on-year 11.4 percent more).In the I quarter of 2026, average monthly remuneration of employees equaled 2 335.9 GEL (166.3 GEL increase year-on-year), while remuneration specifically for women employees was 1 837.6 GEL (126.1 GEL increase year-on-year).Average monthly remuneration by size of enterprises was as follows:• Large business - 2 513.5 GEL;• Medium size business - 2 786.5 GEL;• Small business - 1 787.2 GEL.In the I quarter of 2026, the arts, entertainment and recreation had the highest share (36.8 percent) in the total turnover in business sector, followed by trade sector (including repair of motor vehicles and motorcycles) with 31.4 percent share, manufacturing – with 7.4 percent, construction – with 4.5 percent, transportation and storage – with 4.5 percent, information and communication – with 4.4 percent, and other sectors – with 10.9 percent share.In the I quarter of 2026, trade (wholesale and retail trade; repair of motor vehicles and motorcycles), manufacturing, and human health and social work activities led business sector by number of employed persons with 29.3 percent, 11.4 percent, and 9.4 percent shares, respectively. Enterprises engaged in transportation and storage (8.1 percent), construction activities (7.5 percent), information and communication (6.3 percent), and accommodation and food service activities (5.5 percent) also had a significant share though.

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According to the explanation of the First Vice-President of the National Bank of Georgia, Ekaterine Mikabadze, the sharp increase in energy resources, especially oil prices, in the global market led to an increase in fuel prices in Georgia. This factor was reflected in the inflation rate as a result of direct and indirect effects, due to which the price increase in April reached 5.9%."Inflation decreased in May and the annual rate decreased to 5.7%, which is fully consistent with the central scenario and expectations of the National Bank of Georgia," said Ekaterine Mikabadze.According to the First Vice President of SEB, the National Bank has moderately tightened monetary policy in order to maintain inflation expectations at a stable level. According to her, the future dynamics of inflation significantly depends on the duration and severity of the Middle East conflict.According to the current central scenario of the National Bank, in the event of a gradual settlement of the conflict, inflation will gradually decrease and stabilize around the target rate (3%) in 2027.

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According to the World Bank, the project will finance upgrades to rail freight capacity, modernisation of key road segments in the country, and targeted reforms of rail and road institutions, alleviating infrastructure bottlenecks along the corridor.By enhancing transport connectivity, simplifying market access, and reducing logistics expenses for businesses, farmers, and communities, the TC-GATE Project is expected to directly benefit over 900,000 people and help generate jobs across logistics, transport, agribusiness, and related services, both directly and through wider multiplier effects along the corridor.“These investments will help Georgia realise its full potential as a critical regional transit hub bridging Europe and Asia, while responding to growing demand along the Trans-Caspian Transport Corridor, reflecting evolving global trade flows and need for diversified supply chains,” said Rolande Pryce, World Bank Regional Director for the South Caucasus.He also added that by supporting modernisation of the key rail and road links and reforms aimed to strengthen institutions that manage them, the World Bank Group, jointly with development partners, is helping Georgia and other countries along the corridor create tangible benefits for citizens through better connectivity, safer and more resilient transport, more jobs, and stronger economic opportunities.According to the World Bank, the total cost of the large-scale TC-GATE Project is over USD 750 million, of which this new World Bank Group operation finances USD 372 million, and the remainder is co-financed by the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB). This demonstrates strong multilateral support for Georgia’s connectivity ambition and the development of the Trans-Caspian Transport Corridor broadly.“Through the new project, Georgia is strengthening its role as a reliable and competitive gateway between Europe and Asia, and together with our international partners we are committed to building a modern transport network that will serve the region for decades to come. These investments are not only important for our country’s economic development and for the creation of new opportunities for our citizens, but also for supporting growing international trade flows and more diversified, secure supply chains, as the upgrades to Georgia’s railway and road links will improve Middle Corridor efficiency and strengthen regional connectivity resilience,” said Lasha Khutsishvili, Minister of Finance of Georgia.According to the World Bank, in particular, the TC-GATE Project will help modernise Georgia’s rail freight services by financing new, energy-efficient electric locomotives to replace an ageing fleet, and strengthening JSC Georgian Railway’s operational efficiency, financial sustainability, and governance. The upgrades are expected to enhance locomotive availability to 95%, improve service reliability for shippers, and support a 20% increase in revenues. Additionally, they will lead to a reduction of over 2.3 million tons in net emissions.“To improve road connectivity, the project will finance the construction of two four-lane road segments in Georgia’s strategic corridor and agricultural production region – Kakheti, specifically the Badiauri–Chalaubani–Bakurtsikhe sections, as well as a road connecting Gurjaani to Telavi. This will reduce travel times between Telavi (Eastern Georgia) and Poti Sea Port (Western Georgia) by about 43 minutes and elevate road safety standards. Designed to meet climate-resilient standards, the road works will include measures to minimise disruptions caused by floods and landslides. This will enhance the reliability of year-round market access for people and goods. To strengthen Georgia’s road sector institutions, the project will support the digitisation of road asset management, the deployment of Intelligent Transport Systems through the establishment of a National Highway Control Centre (NHCC), the implementation of climate-resilient systems, and initiatives to ensure long-term fiscal sustainability.The TC-GATE Project will also support economic empowerment for women entrepreneurs in the Kakheti region and fund analytics to explore greater private sector participation opportunities in road management,” reads the World Bank’s press release.

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With regard to the annual core inflation, the prices increased by 3.8%, while the annual core inflation without tobacco amounted to 3.5%.The annual inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices in the group increased by 5.2 percent, contributing 1.84 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: fish (20.9 percent), meat (10.1 percent), bread and cereals (7.0 percent), fruit and grapes (6.5 percent), oils and fats (6.1 percent), sugar, jam, honey, chocolate and confectionery (6.0 percent), coffee, tea and cocoa (5.4 percent), milk, cheese and eggs (4.1 percent), mineral waters, soft drinks, fruit and vegetable juices (1.5 percent). At the same time, prices decreased for vegetables (-7.0 percent);Transport: the prices for the group increased by 15.1 percent, contributing 1.72 percentage points to the overall index. Within the group the prices increased for operation of personal transport equipment (22.7 percent) and transport services (9.3 percent);Housing, water, electricity, gas and other fuels: the prices for the group increased by 7.0 percent, contributing 0.66 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 (5.9 percent) and actual rentals for housing (4.6 percent);Alcoholic beverages and tobacco: the prices increased by 7.2 percent, with the relevant contribution of 0.46 percentage points to the overall annual inflation rate. The prices increased for both tobacco (8.1 percent) and alcoholic beverages (6.4 percent);Health: the prices increased by 5.1 percent, contributing 0.43 percentage points to the overall index. The prices were higher for the following subgroups: medical products, appliances and equipment (7.7 percent), out-patient services (3.0 percent), hospital services (1.4 percent).

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