Economics

The CCI Increased By 2.2% In March Y-O-Y

In detail:• The residential segment index increased by 3.1% compared to the previous month and increased by 9.2% compared to the same month of the previous year;• The non-residential segment index increased by 3.6% compared to the previous month and by 5.5% compared to the same month of the previous year;• The civil segment index increased by 0.9% compared to the previous month and increased by 3.5% compared to the same month of the previous year.In March 2025 the Construction Cost Index (CCI) increased by 2.2 percent compared to the previous month. The change was mainly due to a 11.7% increase in average monthly nominal wages of employees in the construction sector, which contributed 2.2 percentage points to the total index change.Compared to March 2024 the CCI increased by 6.3%. The latter was largely caused by the 22% increase in average monthly nominal wages of employees in the construction sectorand by the 2.7% increase in the prices of construction materials, which contributed 4.25 and 1.64 percentage points to the total index change, respectively. Along with this, the Construction.Cost Index posted a 23.5% increase compared to February.

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Georgian residents’ trips abroad down by 4.4%

From the total number of border crossings, visits by Georgian resident visitors amounted to 482,100, which is 7.6 per cent less than the same period in 2024.The GeoStat reports that Georgian residents made 323,100 tourist-type visits abroad, which is 1.7 per cent lower year-on-year. The majority of visits, 47.1 per cent, were made by Georgian residents aged 31-50, while visits made by women constituted 44.9 per cent of all visits.Additionally, according to GeoStat, during the first quarter of 2025, the largest portion of visits - 36.6 per cent - was made to visit friends and relatives. Most visits were to Turkey and Armenia, with 184,900 and 70,200 visits, respectively.The average number of nights spent during visits in the first quarter of 2025 was 6.7, which is 4.0 per cent higher than the figure recorded in the first quarter of 2024 (6.4 nights). Repeat visits accounted for 98.6 per cent of all visits.Expenses incurred during visits in the reporting period amounted to GEL 481.5 million, which is 5.7 per cent higher than last year. The average expenditure per visit increased by 14.4 per cent compared to the first quarter of 2024, reaching GEL 998.8.

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“Georgian Railway” Has A New Head

Lasha Abashidze was Davit Narmania's deputy during his term as mayor of Tbilisi. He also headed the administration during Giorgi Margvelashvili's presidency.It is worth noting that Davit Peradze has been the head of Georgian Railway since December 2017.

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ADB to lend EUR 98 million for Georgia's energy projects

The loan agreement was officially signed by Georgia’s Minister of Finance, Lasha Khutsishvili, and Lesley Bearman Lahm, Country Director at the Georgia Resident Mission of the Asian Development Bank (ADB).The project is designed to install a climate-resilient energy storage system (BESS) at the Ksani substation. It also involves studying the potential for green hydrogen development, offering practical training in BESS operations, and sharing technical expertise with the Georgian State Electrosystem (GSE).Executing this project will ensure the Georgian power system’s sustainability, flexibility, and security. Simultaneously, it will improve the quality of electricity and contribute significantly to increasing the security of the electricity supply, thereby strengthening Georgia’s energy independence overall.

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Annual inflation in Georgia reached 3.4% in April

With regard to the annual core inflation, the prices increased by 2.3 percent, while the annual core inflation without tobacco also amounted to 2.3 percent.The monthly inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices for the group increased by 0.4 percent, contributing 0.18 percentage points to the overall monthly inflation rate. The prices increased for the following subgroups: fruit and grapes (5.2 percent), bread and cereals (2.2 percent), coffee, tea and cocoa (1.9 percent), fish (1.5 percent), oils and fats (1.5 percent), meat (0.2 percent), sugar, jam, honey, chocolate and confectionery (0.2 percent). At the same time, prices decreased for vegetables (-2.1 percent), milk, cheese and eggs (-1.5 percent), mineral waters, soft drinks, fruit and vegetable juices (-1.2 percent);Clothing and footwear: the prices increased by 1.5 percent, contributing 0.07 percentage points to the overall monthly inflation rate. Prices were higher for clothing (2.3 percent);Health: the prices increased by 0.4 percent, contributing 0.04 percentage points to the overall index. The prices were higher for the following subgroups: out-patient services (0.7 percent), medical products, appliances and equipment (0.5 percent), hospital services (0.3 percent);Transport: the prices for the group decreased by 1.0 percent, contributing -0.11 percentage points to the overall index. Within the group the prices decreased for operation of personal transport equipment (-1.9 percent), purchase of vehicles (-0.2 percent). At the same time, prices increased for transport services (1.3 percent).

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Number Of Permissions Granted For The Construction Of Buildings Was Do...

Note that 75.5% of the all permits have been issued in four regions of the country, namely: 47.4% in Tbilisi, 12.9% in Kvemo Kartli region, 8% in Mtskheta-Mtianeti region and 7.2% in Kakheti region.It should be noted that in January-March of 2025, permissions were issued for the construction of multifunctional residential complexes, trade facilities, hotels, industrial enterprises, objects for agricultural purposes, and other buildings.698 objects (17.0 percent less compared to the previous year) with total area of 659.6 thousand square meters (18.1 percent less compared to the previous year) were completed in January-March of 2025.More than two-thirds of the completed constructions are distributed among four regions of the country, namely: 32.5 percent is located in Tbilisi, 14% in Mtskheta-Mtianeti region, 11.3% in Kakheti region, and 9.3% in Shida Kartli region.

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GDP Growth Made Up 9% In March Y-O-Y

In March 2025, compared to the same period of the previous year, the estimated real growth in following activities contributed significantly: Information and communication, Professional, scientific and technical activities, Financial and Insurance activities, Transportation and storage and Construction.Decline was registered in Manufacturing.

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Demand in Tbilisi residential real estate market remained sluggish – G...

DemandIn Mar-25, the number of sold apartments in Tbilisi, according to the Public Registry, stood at 3,078 units, up by 2.9% y/y, of which:• Sales on the secondary market, which show real-time dynamics, fell by 2.9% y/y.• Sales on the primary market, where data are impacted by delayed registrations, increased by 9.8% y/y, reflecting a one-off effect from the late registrations of previously sold apartments in several projects.According to Galt&Taggart, a real-time survey of developers, which captures current trends on primary market, mirrors the secondary market trend, showing a 11.3% y/y reduction in the number of sold apartments in Mar-25.In total, 9,286 apartments were sold in Tbilisi in 1Q25, bringing the residential market value to US$ 671.7mn (-1.1% y/y).SupplyPermit issuance has regained momentum following the Jan-25 slowdown. In Mar-25, 17 residential construction permits were issued, with total living area reaching 160,975 m2 (+7.3% y/y). Overall, permit issuance in 1Q25 was down 7.4% y/y, yet still elevated compared to levels recorded before 2023.PricesIn Mar-25, the primary market average price per square meter rose by 0.4% m/m, reaching US$1,330. In contrast, the average price on the secondary market (for new buildings built with permits issued after 2013) declined for the 2nd month in a row, falling by 1.9% m/m to US$1,220.RentsIn Mar-25, price for renting an average apartment (50-60 m2 ) in Tbilisi decreased slightly by 0.3% m/m to US$ 9.5 per m² . Rental yield was 8.6%

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Electricity generation down by 16%, while consumption up by 1.3%

According to TBC Capital, the decrease was mainly due to a 52.2% decrease in thermal power plant output and a 22.6% decrease in wind power plant output. At the same time, hydroelectric power plant output increased by 14.4% and reached 831 GWh.Electricity generated by thermal power plants in March amounted to 189 gigawatt hours (GWh), while wind power plant output amounted to 6.5 GWh.In total, electricity generation in 1Q25 decreased by 15.6% (y.y) and amounted to 2,809 GWh.Against this backdrop, in March, consumption increased by 4.2% year-on-year (y.y) to 1,232 GWh. Retail consumption increased by 2.5% to 693 GWh, while direct consumer consumption increased by 16.6% to 285 GWh.Consumption in the Autonomous Republic of Abkhazia decreased by 3.1% to 253 GWh.Year-to-date, in 1Q25, consumption increased by 1.3% to 3,656 GWh, which the investment bank said reflects changes in market supply and demand dynamics.

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The average weighted price of balancing electricity is increasing

On the monthly basis, in March 2025 the price of balancing electricity increased by 1.4%.Georgia continued to import electricity totaling 252 GWh. Import from Russia, Azerbaijan and Armenia was distributed as 72%, 21% and 7%, respectively.In March 2025, Georgia spent approximately USD 4.5 million on imported electricity.

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TBC strengthens its team in Uzbekistan

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GDP Growth Made Up 9% In March Y-O-Y

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Paysera still could not make a profit in Q1/2025

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Politics

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Irakli Kobakhidze was elected as the Chairman of the GD political part...

The position of party chairman became vacant following former chair Irakli Garibashvili’s announcement of his withdrawal from politics.The 9th GD Congress has also formally updated the composition of the Political Council for the Georgian Dream party.The Political Council is now comprised of: Bidzina Ivanishvili, Irakli Kobakhidze, Kakha Kaladze, Shalva Papuashvili, Mamuka Mdinaradze, Giorgi Volski, Tea Tsulukiani, Vakhtang Gomelauri, Irakli Chikovani, Maka Bochorishvili, Nikoloz Samkharadze, Mariam Kvrivishvili, Dimitri Samkharadze, Sulkhan Tamazashvili, and Nino Tsilosani.Irakli Kobakhidze had previously held the position of Chairman of the Georgian Dream Party between 2021 and 2024.

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Infrastructure Minister appoints Beka Urushadze as Municipal Developme...

Beka Urushadze has a PhD in economics and information and communications technologies. He has worked as a project manager in different educational institutions and has held managerial positions in commercial organizations such as Urus Group, Vision Fund International and World Vision International.Beka Urushadze worked as an IT advisor in the Penitentiary and Probation Ministry. He replaced Davit Tabidze in the post at the Municipal Development Fund.

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PM appoints new state governors in five regions

By decision of the Prime Minister, the position of State Governor in Mtskheta-Mtianeti was assigned to Aleksandre Zagashvili, in Shida Kartli to Simon Guledani, in Samtskhe-Javakheti to Zaal Gelashvili, in Guria to Giorgi Ghurjumelidze, and in Kvemo Kartli to Levan Kharabadze.According to the governmental administration, Irakli Kobakhidze met with the newly appointed state governors today at the Government House, together with the Minister of Regional Development, Kakha Guledani.The Prime Minister emphasized the special importance of regional development and noted that the establishment of the Ministry of Regional Development as a separate agency also demonstrates the priority of this issue.According to the Head of Government, even more attention will be paid to the effective implementation of projects related to regional development, and in this process, the regions need to have leaders distinguished by experience, professionalism, and integrity.The Prime Minister also drew attention to the need to improve the quality and coordination of projects and wished the newly appointed state representatives success.

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Georgia moves up from 103rd to 114th place in RSF's Media Freedom Inde...

According to the document, the media landscape is diverse and, at the same time, highly politically polarised. Manipulation, hate speech and disinformation are widespread in the media, especially on television, the main source of information. Media owners often control editorial content, as was the case with Rustavi 2, a TV channel that changed its editorial line after its handover to a former owner, and the public broadcaster GPB, which experienced government interference. Regional and community radio stations struggle with funding problems, while the print media’s readership is in decline and that of online news outlets is on the rise.The country is undergoing a new and serious political crisis following widely contested legislative elections in October 2024, which have plunged the country into a repressive environment and international isolation. This environment is conducive to sustained competition for control of television networks. Although Georgian law prohibits political parties from owning media outlets, the big networks generally defend the interests of their owners, who often have close ties to political leaders. The same goes for state-owned media, which are subject to strong interference by the authorities. At the same time, the authorities often refuse to respond to media that criticise them and sometimes resort to censorship, raids, smear campaigns and intimidation.The government still hasn’t fulfilled the European Union’s recommendation on press freedom, a necessary step before starting negotiations on membership. Contrary to previous reforms strengthening pluralism and transparency in the media, the government even adopted a repressive “foreign influence” law that copies the Russian “foreign agents” legislation, which undermines media freedom. The courts sometimes try to attack the confidentiality of sources, even though it is guaranteed by the law on freedom of expression.The underdeveloped advertising market is declining in print and online media, which are largely financed by donors, usually from the West. The worrying economic problems of privately owned media have been accentuated by the “foreign influence” law, which penalises media outlets supported by Western institutions, as well as changes in advertising legislation, distorting competition with the heavily subsidised state-owned media.Georgian society is marked by strong social tensions on certain issues, such as religion, LGBTQ+, rights and Russian influence, impacting journalistic coverage. Influential social figures, such as members of the Orthodox clergy, are wiretapped by the security services, thereby violating the confidentiality of journalists’ sources.Verbal and physical assaults on journalists are frequent, including by senior government officials, especially during electoral campaigns. A sustained and brutal assault on about 50 reporters during homophobic counter-demonstrations in July 2021, in front of impassive security forces, marked an unprecedented setback. The lack of transparency and progress in the investigation speaks to the impunity enjoyed by those who commit crimes against journalists.

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Public Defender echoes investigative actions ongoing in Foundations Ca...

According to Levan Ioseliani, all possible measures must be taken to prevent harm to minors“It should be emphasized that when conducting investigative actions, all possible measures must be taken to prevent harm to minors. For this purpose, the law enforcement agency is obliged to assess the situation in advance and create a safe environment for the minors. And, in case of impossibility of prior consideration, the minor should be promptly removed from the ongoing processes, with the involvement of a family member, relative or trusted person, or if this is not possible, the involvement of a social worker and psychologist should be ensured.The Public Defender will study the above facts and will have all appropriate responses within the scope of his authority,” reads the statement.The police searched the residence of Aleko Tskitishvili, the Executive Director of the Human Rights Centre. Searches were also carried out at the homes of journalist and Nanuka Fund founder Nanuka Zhorzholiani, as well as Mariam Bajelidze, one of the founders of the Sirtskhvilia (Shame) movement.