As of January 2026, the overall price level in Georgia increased by 4.8 percent year-on-year. Higher-than-targeted inflation continues to be largely driven by food price inflation. In particular, rising prices on international markets for certain commodity groups on international markets, which have a substantial weight in Georgia’s consumer basket, are being transmitted to the domestic market. On the other hand, alongside external factors, one-off price adjustments for certain domestic products and volatility in agricultural product prices are also putting upward pressure on inflation. At the same time, core inflation, excluding food, energy, and tobacco from the headline, remains close to the target (2.1 percent in January), indicating the stability of long-term inflation expectations. Service sector inflation, characterized by relatively sticky price adjustments, increased slightly in January, reaching 3 percent. Accordingly, measures of sticky price indices indicate that inflationary pressures remain less broad-based. However the moderate month-of-month increase in sticky price inflation heightens the risks of upward shift in inflation expectations. Against this backdrop, according to the NBG's updated central scenario, the inflation forecast for 2026 has been revised slightly upward. Under the central scenario, the current inflation dynamics are still assessed as temporary and are not expected to generate ‘second-round’ effects, implying that price pressures are not spilling over to other goods and services. Accordingly, other things being equal, as the effects of temporary factors subside, inflation is expected to gradually converge toward the target rate from the second quarter of 2026, averaging 3.7 percent over the year.Economic activity is gradually converging toward its long-term growth rate, easing the demand-side pressures on prices. In particular, according to the NBG's updated central scenario, economic growth is projected at 5 percent in 2026. The normalization of the economic growth will be further supported by maintaining credit activity close to its equilibrium level.Given the high uncertainty, upside risks to inflation are more pronounced, while downside risks continue to remain. Accordingly, the Monetary Policy Committee (MPC) considered both high-inflation and low-inflation risk scenarios, along with the central scenario, and the risks operating in different directions were taken into account in the decision-making process.Under the realization of the high-inflation risk scenario, fundamental economic processes would require a higher trajectory for the monetary policy rate compared with the central scenario. Specifically, in January, the moderate increase in sticky price indicators compared with previous months heightens the risks of an an increase in long-term inflation expectations. At the same time, sustaining a high level of economic activity, amid normalizing growth in high-productive sectors, is expected to put additional pressure on inflation. Under this scenario, an escalation of the global geopolitical situation could lead to higher-than-expected price increases on international commodity markets, which would also be transmitted to the domestic market.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster reduction in the policy rate compared with the central scenario. Specifically, sustaining high growth rates in high-productive sectors could accelerate the potential growth. In this case, a strengthening of the supply side would have a disinflationary effect, allowing inflation to converge toward the target more rapidly than under the central scenario. Meanwhile, at this stage, developments in the domestic labor market are exerting downward pressure on prices, supporting the likelihood of a low-inflation scenario. Among external factors, a prolonged period of a weak position of the U.S. dollar, together with declining oil prices in international markets, would put downward pressure on headline inflation.As a result of macroeconomic analysis and the assessment of the aforementioned scenarios, the MPC has considered it optimal to maintain a moderately tight monetary policy stance and kept the policy rate unchanged at 8 percent. Upcoming decisions on the monetary policy rate will depend on updated data and the realization of risks. According to the central scenario, the NBG will continue the normalization of monetary policy only after the current one-off factors have been fully dissipated and inflation converges the target level. However, should inflation persist above the target for an extended period due to various one-off factors, the MPC stands ready to maintain the current tight stance for longer than expected and, if necessary, to tighten it further.The NBG will use all available instruments to maintain price stability. This means keeping the overall price level increase close to the 3 percent target over the medium term.The next meeting of the Monetary Policy Committee will be held on March 25, 2026.
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Lion Finance Group (BGEO LN) shares closed at GBP 99.95/share (-0.94% w/w and +9.29% m/m). More than 264k shares traded in the range of GBP 97.35 - 103.90/share. Average daily traded volume was 56k in the last 4 weeks. The volume of BGEO shares traded was at 0.61% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 42.65/share (+0.35% w/w and +8.52% m/m). More than 361k shares changed hands in the range of GBP 41.85 - 44.05/share. Average daily traded volume was 74k in the last 4 weeks. The volume of TBCG shares traded was at 0.65% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 32.55/share (-3.56% w/w and +5.34% m/m). More than 166k shares traded in the range of GBP 31.75 - 34.20/share. Average daily traded volume was 59k in the last 4 weeks. The volume of CGEO shares traded was at 0.48% of its capitalization.
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According to TI, 50 is the average result on a 100-point scale, and Georgia has not had such a low score since 2013, despite the fact that it remains the leader in the Eastern Europe and Central Asia region.“The Corruption Perceptions Index mainly measures the vulnerability of a country’s public sector to corruption, for example, how widespread petty bribery is. Georgia’s average score indicates that petty bribery is not widespread in the country.However, the index does not measure such complex forms of corruption as state capture and kleptocracy. This is precisely the main challenge in terms of corruption in Georgia.The Corruption Perception Index is conducted in 182 countries. Countries are evaluated using a 100-point system, where 100 is a positive result and 0 is a negative result.According to the accompanying analysis of the 2025 results, Georgia's decline in score and, consequently, its increase in corruption risk is directly related to the decline of democracy and the rise of autocracy in the country:“Georgia illustrates how democratic backsliding directly fuels corruption risks. The ruling party has introduced a so-called “Foreign Agents” law and a Grants Law, which are anti-democratic measures that criminalise legitimate NGO activity and brand independent voices as foreign agents. It has also intensified its campaign against dissent through politically motivated prosecutions, media restrictions, freezing NGO bank accounts and violent crackdowns on protesters and journalists. Following disputed 2024 elections and the suspension of EU integration talks, international observers now describe Georgia as undergoing an authoritarian turn, with proposals to ban opposition parties and deepen political control over the civil service, police and judiciary. This is creating severely increased corruption risks and damaging Georgia’s society as a whole.In almost two thirds of countries whose CPI scores have significantly declined since 2012, there has been a worrying pattern of restriction on freedoms of expression, association and assembly. In the last decade, politicised interference with NGO operations in countries such as Georgia, Indonesia, Peru and Tunisia has seen governments introduce new laws to limit access to funding or even disband organisations that scrutinise and criticise them, often paired with smear campaigns and intimidation. In these contexts it is harder for independent journalists, civil society organisations and whistleblowers to freely speak out against corruption, and more likely that corrupt officials can continue misusing their power” , - the document reads.
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Speaking to reporters on Tuesday, Kobakhidze emphasized the importance of the discussions held with academic staff and university leadership.“The healthy discussion that took place yesterday was very important. We listened to the academic community and took their arguments and positions into account. Ultimately, the decision we reached together with the representatives of the Georgian Technical University was very important,” he said.The Prime Minister stressed that Georgia currently faces significant challenges in technical education, both in state and private sectors, and a shortage of qualified personnel in fields such as engineering, architecture, and construction.“Our main task is to ensure that technical disciplines develop qualitatively. We must enrich our country’s workforce in these areas, and special attention will be paid to strengthening the resources of the Technical University,” Kobakhidze added.He also announced that GTU will revert to its pre-independence model, retaining only the faculties that existed before the 1990s, a move aimed at consolidating resources and enhancing the quality of technical education in Georgia.
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RAW Wine is a leading international exhibition that brings together producers of high-quality natural, organic and biodynamic wines. The exhibition is organized by the renowned Master of Wine from France, Isabelle Legeron.This year, about 200 natural wine producers from 16 countries were represented at the Paris exhibition, including countries famous for their winemaking traditions, such as France, Italy, Spain, Portugal, and others. Traditionally, there was great interest in Georgian wine from wine professionals and visitors.The exhibition was attended by Levan Mekhuzla, Chairman of the National Wine Agency."This year, we continue to actively support small wineries so that their products are widely represented at international exhibitions. RAW Wine provides Georgian winemakers with the opportunity to find new partners and export markets. Georgia's representation at this prestigious exhibition of natural wines is important for the popularization of qvevri wine and the development of small and medium-sized wineries. Participation in such international exhibitions motivates winemakers to take greater care of the quality and image of their products," noted Levan Mekhuzla.The exhibition was attended by the Chargé d’Affaires of the Embassy of Georgia to the French Republic, Ekaterine Kokaia, and Consul Rusudan Didebulidze. To present their wines at the exhibition, Georgian winemakers also received support from the Georgian Embassy in the French Republic.It is noteworthy that with the support of the National Wine Agency, in 2026, Qvevri wine producing wineries will participate in "RAW Wine" exhibitions in various countries.
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The parties discussed freight transportation and improved services."The Director General of Georgian Railways signed a document under which the countries will deepen cooperation within the framework of the association, which will strengthen Georgia's role as a transit country, increase the potential for attracting cargo flows and contribute to the development of transport corridors between Europe and Asia," Georgian Railways wrote.
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