Georgia's economy up by 6.6% in August

As a result of the transaction, the total voting rights of FIL Limited increased from 3,385,092 shares to 3,395,861 shares. Of this, 2,804,048 (previously - 2,818,956) are indirect voting rights, through companies under its control, and 591,813 (previously - 566,136) are voting rights through the CFD mechanism.It should be noted that a CFD is a derivative financial instrument that allows an investor to benefit from changes in the price of a share without directly owning it.

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The project aims to enhance RAI's operating efficiency by replacing outdated, energy-consuming equipment with state-of-the-art, energy-efficient technology, as well as optimizing natural gas and electricity consumption. The plant upgrades will also help improve the quality of fertilizers produced. The resulting improved quality of fertilizers will support agriculture in Georgia and regional countries, including Armenia, Azerbaijan and other ADB DMCs.The project will finance the following for RAI: (i) capital expenditures (capex) to modernize and refurbish an existing high-density ammonium nitrate (HDAN) production facility, and to support energy-efficient capex; and (ii) working capital. HDAN is a nitrogen-rich fertilizer used to promote vigorous plant growth and improve crop yields. The accompanying TA will support sustainable inclusive farming practices to improve climate resilience and productivity of farmers, including female farmers. It will also improve access to fertilizers, build farmers' functional financial literacy, and encourage the efficient use of fertilizers to preserve soil health.To remind, at the end of July, Rustavi Azot was also granted a loan of $65 million by the European Bank for Reconstruction and Development (EBRD) to build an ammonium nitrate plant. The funds are also intended to improve the energy efficiency of the existing facility.Rustavi Azot is one of the largest fertilizer and industrial chemical companies in Georgia. It has an annual production capacity of 550,000 tons of ammonium nitrate and serves customers in the region. The loan sponsor (project implementer) is RAI's parent company Excelus Holdings LLC, which in turn is a subsidiary of Indorama Corporation Pte Ltd. On January 10, 2023, Excelus Holdings LLC acquired a 100% stake in Rustavi Azot JSC.

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“Today is October 2. Exactly 30 years ago, on this day in 1995, the Lari was declared the sole legal tender throughout the entire territory of Georgia. Successes and challenges marked the past three decades. During this period, the Lari has fulfilled its primary role: to serve as a dependable and stable currency for economic transactions and the daily lives of our citizens. For each of us, the Lari symbolises freedom, unity and national identity. It worthily continues the 26-century history of Georgian currency, which began with the Kolkhi tetri and stands as clear testament to the ancient civilisation and rich economic heritage of Georgia’s territory. The very name of our currency comes from our history – ‘Lari’ is a word expressing property, treasure and wealth,” noted Natia Turnava.According to her, the introduction of the Lari was a milestone event in the country’s developmental history.“The Lari is one of the most significant symbols of our statehood. Moreover, it is the cornerstone of independent monetary policy. Following the restoration of Georgian statehood on April 9, 1991, the foundations were laid for an independent monetary and credit system in the country. Particularly noteworthy in this regard are the laws adopted on August 2 of that same year by the Supreme Council of the Republic of Georgia, ‘On the National Bank’, ‘On Monetary and Credit Regulation’, and ‘On Banks and Banking Activities’.It was precisely from this period that preparatory work officially began on creating the design, name and technical parameters of the Georgian currency. In this process, we must gratefully acknowledge the support and assistance of the International Monetary Fund. The IMF remains to this day one of our most important and trusted partners.Above all, the Lari brought us stability. Secondly, it strengthened our sovereignty. Subsequently, as an achievement of independent Georgia, it became a symbol of unity and freedom. Now is the time for a new chapter to be written in our history, and this will depend upon the actions we undertake. It will depend upon the trust of the Georgian people.I am pleased that public confidence in the Lari is growing, against a backdrop of economic stability, in which the consistent policy of larisation, effective monetary policy and supervisory approaches pursued by the National Bank undoubtedly play a major role. The tangible results are evident, whilst decades ago 70-80 per cent of deposits were held in foreign currency, today almost half of all deposits are in Lari (50 per cent), whilst larisation of deposits by residents of our country has increased even further, to 57 per cent,” stated Natia Turnava.According to the NBG Governor, it should be noted that the National Bank has marked this anniversary year of the Lari with numerous events and activities.“We hosted a major international forum, relaunched publication of our scientific-analytical journal, minted commemorative coins in the denominations of 5 Lari in gold, silver and copper-nickel, and issued a jubilee banknote in the denomination of 50 Lari.Furthermore, at the initiative of the National Bank, Georgian Post issued a thematic postal stamp, whilst the Georgian Public Broadcaster (GPB) produced a documentary film depicting the life and work of Iason Lortkipanidze, the first Governor of the State Bank of Georgia.This year, Economist’s Day in Georgia was traditionally marked with a conference dedicated to the 30th anniversary of the Lari’s entry into circulation. As part of the anniversary celebrations for the Lari, a range of activities are planned throughout the rest of the year, including initiatives in the educational sector.Once again, I congratulate all of Georgia on the 30th anniversary of the Lari. Everyone who was involved in the process of implementing monetary reform. Those who prepared the economic foundations for the introduction of the Georgian Lari and made even the smallest contribution to this most important undertaking for the Georgian state,” declared Natia Turnava.

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During the introductory meeting, the dignitaries reviewed current and future areas of cooperation between the two countries.The Minister of Finance of Georgia congratulated the Ambassador on the start of his diplomatic mission and wished him every success in his work.Both sides expressed their readiness to work towards deepening cooperation between Georgia and France.The meeting was attended by Ekaterine Guntsadze, Deputy Minister of Finance of Georgia; Hugo Debroux, Head of the Economic Service of the French Embassy in Georgia and Fanny Delpue, Director of the South Caucasus Regional Office of the Agence Française de Développement (AFD).

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According to the Ministry of Agriculture, this represents a 36% increase in export value compared to the same period last year, or an additional USD 6.6 million. The average export price per kilogram rose by 39%, reaching USD 8.46.The European Union remains Georgia’s primary export market, with Italy receiving the largest volume at 1,000 tonnes. Other key EU partners include Germany (302.1 tonnes), Spain (197.0 tonnes), and the Czech Republic (119.4 tonnes).Beyond the EU, Georgian hazelnuts were also exported to Armenia (119.7 tonnes), Russia (117.5 tonnes), Turkiye (111.2 tonnes), and various other markets.

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Key Macroeconomic Assumptions Real economic growth: 5.0% (medium-term forecast: 5.3%) Nominal GDP: 110.5 billion GEL, with per capita GDP exceeding $10,900 Budget revenues: 26.8 billion GEL (24.2% of GDP) Budget deficit: 2.5% of GDP Government debt: 35% of GDP By 2029, nominal GDP is expected to reach 140.9 billion GEL, exceeding $13,900 per capita.Social Spending PrioritiesSocial programs account for 7.0 billion GEL of the budget, with notable allocations including: Pensions: Pensioners aged 70+ will receive 495 GEL (594 GEL in mountainous settlements) Pensioners under 70 will receive 370 GEL (444 GEL in mountainous settlements) Disability benefits: increase of 45 GEL for those under 18, and 20 GEL for other categories Healthcare: 2.1 billion GEL, including a 10% salary increase for primary healthcare personnel Housing for displaced persons: 240 million GEL Education, Culture, and Sports Education and science: 3.4 billion GEL 1.7 billion GEL for public school financing 500+ million GEL for construction and rehabilitation of schools 110 million GEL for kindergartens Culture and sports: 1.05 billion GEL, with 615 million GEL funded through the state budget Defense and Security Ministry of Defense, Ministry of Internal Affairs, and security services: 3.5 billion GEL Includes a 10% salary increase for police officers and soldiers Defense infrastructure development: 445 million GEL Infrastructure and Development Total infrastructure funding: 7.6 billion GEL, including: 1.2 billion GEL for roads and expressways (681 million GEL for expressway construction) 2.6 billion GEL for municipal infrastructure 570+ million GEL for water supply and sewage systems 820 million GEL for educational infrastructure 150 million GEL for tourism infrastructure 200 million GEL for sports infrastructure Other Allocations Small and medium-sized business promotion: 270 million GEL Agriculture programs: 660 million GEL Environmental protection: 210 million GEL Public servant salaries: 10% increase in budgetary organization remuneration The budget will now be discussed in Parliament, where proposals and feedback will be incorporated, with final approval expected in December 2025.

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The increase was observed in the production value of the business sector as well. In 2024, production value equaled 90.5 billion GEL, which is 16.3 percent more year-on-year.In the 2024, large businesses generated 67.7 percent of total turnover, while medium-sized businesses generated 15.8 percent, and 16.5 percent was generated by small businesses. A distribution was slightly different in case of total production value: 46.8 percent was on large businesses, 25.5% - on medium, and 27.7% - on small businesses.In 2024, total purchases of goods and services carried out by enterprises equaled 114.9 billion GEL (year-on-year 5.4 percent more), while the purchase of goods and services for resale amounted to 71.4 billion GEL (year-on-year 0.2 percent more).In the 2024, the average number of persons employed in business sector equaled 866.2 thousand, which is year-on-year 5.2 percent more. Out of the total number of persons employed, 43.2% were female and 56.8% were male.Large businesses employed 39.4% of total number of persons, while 20.3% were employed by medium, and 40.3% - by small businesses. The total number of employees amounted to 801.6 thousand (year-on-year 3.9% more).The total personnel costs of enterprises equaled 19.9 billion GEL (year-on-year 15.3 percent more).In the 2024, average monthly remuneration of employed persons equaled 2 024.4 GEL (197.2 GEL increase year-on-year) while remuneration of employed women specifically was 1 601.4 GEL(156.2 GEL increase year-on-year). Average monthly remuneration of employed persons by size of enterprises is as follows: Large business - 2 297.4 GEL Medium business - 2 443.8 GEL Small business - 1 437.5 GEL In the 2024, the trade sector (including repair of motor vehicles and motorcycles) has the highest share (34.4 percent) in the total turnover in the business sector, followed by arts, entertainmentand recreation with 33.5 percent share, manufacturing - with 7.9 percent, construction - with 6.6 percent, transportation and storage - with 4.6 percent, and other sectors - with 12.9 percent share.In the 2024, 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 employees (accordingly with 29.0 percent, 11.3 percent and 9.3 percent share). However, enterprises engaged in transportation and storage (8.6 percent), construction activities (8.0 percent), information and communication (5.9 percent), and accommodation and food service activities (5.3 percent) had also a significant share.

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Turnover increased about 4.1 times in manufacturing and about 2.0 times in healthcare and social work activities. Turnover also increased in the professional, scientific and technical activities (78.8 percent), financial and insurance activities (74.5 percent), administrative and support service activities (31.6 percent), information and communication (22.3 percent), other services (15.0 percent), accommodation and food service activities (9.3 percent), and transportation and storage(0.8 percent) sectors.The production value (of goods and services) of non-profit institutions amounted to 2 720.6 million GEL, 15.9 percent higher compared to the previous year.The biggest shares in production value was generated by organizations in following sectors: other services (25.4 percent), arts, entertainment and recreation (22.1 percent), healthcare and social work (16.5 percent), education (14.6 percent), professional, scientific and technical activities (6.4 percent), and water supply, sewerage, waste management and remediation activities (5.3 percent). 62.5 thousand people (51.9 percent women and 48.1 percent men) were employed in nonprofit organizations in 2024. Compared to 2023, this figure has increased by 4.2 percent.Education sector held the biggest share (24.8 percent) in employment, followed by the similar share of arts, entertainment and recreation (24.8 percent), then followed water supply, sewerage, waste management and remediation activities (13.9 percent), healthcare and social work (12.7 percent), while other sectors held the rest of 23.8 percent.Out of all employed, 62.1 thousand were hired, which is 4.1 percent more compared to 2023.

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