According to the Ministry of Environmental Protection and Agriculture, a further restriction on plastic consumption also enters into force today. Specifically, public procurement bodies are henceforth prohibited from purchasing plastic cups, containers, or beverages bottled in plastic vessels of up to three litres. The restriction does not apply to the procurement of drinks in plastic bottles of up to three litres where such purchases are made for the needs of the defence forces and military personnel.Compliance with these regulations will be overseen, within their respective remits, by the National Food Agency, the Department of Environmental Supervision, and the Revenue Service of the Ministry of Finance.Under the Code of Administrative Offences of Georgia, violations of the requirements set out in the decree will carry a fine of 1,000 lari and confiscation of the relevant goods; repeat violations will attract a fine of 2,000 lari and confiscation.“It is important to note that the regulation does not apply to the export of plastic products. Manufacturers producing goods for export are required to notify the Department of Environmental Supervision in writing, at least one month before commencing production, of the proposed start and end dates of production, the quantity of goods to be manufactured, the destination countries, and the intended export schedule,” the Ministry of Environmental Protection and Agriculture stated.

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At a municipal government meeting held on Wednesday, Kaladze noted that three Turkish and one Chinese companies are among the bidders. The project, which is being implemented in accordance with the procurement rules of the Asian Development Bank (ADB), is financed from the state budget.“All four bidders are quite large and experienced companies that have implemented a number of similar projects. A detailed analysis of the documentation has begun, after which the winner will be identified and a contract will be signed,” Kaladze said.The main parameters of the project are as follows: Route: from microdistricts 3 and 4 of Didi Dighomi to metro station “Didube” Length: approximately 7.5 kilometers Infrastructure: 11 stops and a depot, which will serve 11 trams Timeline: The project is in three stages (concept, detailed design, construction) and its total completion period is 36 months The new tender process began after the first tender announced in October 2025 was canceled due to the need to adjust technical parameters.The construction of the tram line is part of the Tbilisi Transport Development Plan, which was prepared by the Danish consulting company Ramboll. The project aims to integrate the densely populated district of Didi Dighomi into the city’s transport network and reduce travel times.The tram system in Georgia was completely dismantled during the previous government, making this project the first such initiative in the history of independent Georgia.

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Balance of goods remains the main driver of the current account balance. Trade in goods deficit increased by 6.3 percent year-on-year, amounting to USD 1.9 billion (GEL 5.0 billion) in the fourth quarter of 2025.The improvement in the current account balance in the fourth quarter of 2025 was primarily driven by increased service exports. In particular, the services surplus rose by 14.1 percent, or USD 256.6 million, compared to the same period of the previous year, reaching USD 1,038.5 million. The travel services exports reached USD 1.1 billion (GEL 2.8 billion) in the fourth quarter of 2025, up by 9.2 percent annually. Exports of transportation services remained at a high level, amounting to USD 418.4 million in the fourth quarter of 2025, equivalent to 3.9 percent of GDP. Meanwhile, income from exports of computer and information services also continued to grow, reaching USD 357.0 million in the fourth quarter of 2025 and accounting for 3.4 percent of GDP.Net income account totaled USD -634.5 million (GEL -1.7 billion) in the fourth quarter of 2025. Net compensation of employees, the positive component of income account increased by 18.4 percent year-on-year while net investment income - the negative component grew by 9.1 percent over the same period.The current transfers account remained positive. Credits of current transfers increased by 14.7 percent year-on-year, totaling USD 1.0 billion (GEL 2.7 billion). Net transfers of the private sector rose by 15.0 percent, amounting to USD 945.4 million (GEL 2.6 billion).The current account deficit is predominantly financed by foreign direct investment. Net foreign direct investment amounted to USD 374.4 million (GEL 1.0 billion) in the reporting period, accounting for 3.5 percent of GDP.

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International assets totaled USD 19.9 billion (GEL 53.7 billion) as of December 31, 2025, increasing by USD 2.6 billion compared to the previous year.International liabilities increased by USD 5.1 billion during the year, reaching USD 52.3 billion (GEL 140.8 billion).

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Public sector external debt amounted to 11.7 billion USD (31.6 billion GEL) or 30.7 percent of GDP, out of which, debt of the general government amounted to 9.2 billion USD (24.8 billion GEL) or 24.1 percent of GDP. External liabilities of the National Bank of Georgia amounted to 780.9 million USD (2.1 billion GEL) or 2.0 percent of GDP, and the bonds and loans of public enterprises were correspondingly 473.1 million USD (1.3 billion GEL) or 1.2 percent of GDP and 1.3 billion USD (3.4 billion GEL) and 3.3 percent of GDP.Banking sector external debt amounted to 9.5 billion USD (25.5 billion GEL) or 24.8 percent of GDP; Other sectors’ external debt stood at 5.0 billion USD (13.4 billion GEL) or 13.0 percent of GDP; While 2.4 billion USD (6.6 billion GEL) or 6.4 percent of GDP was the intercompany lending. 86.7 percent of the gross external debt of Georgia was denominated in a foreign currency.The net external debt of Georgia amounted to 12.6 billion USD (34.0 billion GEL) or 33.1 percent of the 2025 annual GDP. Net public sector external debt was 5.6 billion USD (15.0 billion GEL) or 14.6 percent of GDP.External liabilities of the National Bank of Georgia decreased by 38.6 million USD, out of that, transactions led to external debt’s decrease by 37.5 million USD and exchange rate changes led to decrease by 1.0 million USD. By the end of the 2025, the external debt of the National Bank of Georgia amounted to 780.9 million USD, of which 475.5 million USD are Special Drawing Rights (SDR)1, which have no maturity date, therefore there is no obligation to repay them as long as Georgia is a member of the IMF.

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DemandIn Feb-26, demand remained solid on both primary and secondary markets, indicating strong start of the year and following the trend from 2H25. On the supply side, the living area of issued permits continued to fall for the 5th month in a row, signalling a normalization after previously elevated levels. Prices continued to grow with accelerated pace on both primary and secondary markets, supported by strong demand and slower permit issuance.Demand In Feb-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 3,822 units, of which:• Sales on the secondary market increased significantly by 19.2% y/y to 1,864 (up 8.6% y/y in 2M26).• Sales on the primary market, where data are impacted by delayed registrations, was up 11.2% y/y to 1,958 (up 7.8% y/y in 2M26).G&T’s real-time survey of developers, which captures current trends on the primary market, shows a significant 26.6% y/y increase in Feb-26. Cumulatively, primary market sales were up 24.1% y/y in 2M26. This largely reflects a low base effect from last year, driven by domestic political instability in Tbilisi. In total, 6,786 transactions were registered in Tbilisi in 2M26, bringing the residential market value to US$ 595mn (+16.7% y/y).SupplyIn Feb-26, construction permits were issued for 10 residential projects, with total living area reaching 60,283 sq.m (-44.7% y/y). Notably, the living area of issued permits has contracted for the 5th consecutive month, suggesting easing supply pressures after periods of high issuance. Overall, living area of permits in 2M26 was down 50.7% y/y.Prices In Feb-26, primary market price continued to rise with high growth rate, increasing by 0.9% m/m to US$ 1,398 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 0.6% m/m, reaching US$ 1,304 per sq.m.RentsIn Feb-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 10.1 per sq.m (-1.8% m/m), keeping rental yield high at 8.6%.

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