Price Commission Recommendation: Expanding the Reference System Will Reduce Medicine Prices by 40%

The ratio of deposits has also declined. The ratio of deposits to GDP is 64%, and loans - 67.8%.The ratio of monetary aggregates to GDP was the highest in the post-pandemic spring of 2021, when banking sector assets reached 117% of GDP.This year, according to statistics corrected at the end of April, the ratio of assets to GDP exceeded 100% in July 2025.When determining the coefficient of the State Budget, the GDP data for the last 4 quarters is used as a guide.Percentage of GDP (%)

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DemandIn Mar-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 4,121 units, of which:• Sales on the secondary market increased significantly by 26.9% y/y to 2,068 (up 15.1% y/y in 1Q26).• Sales on the primary market, where data are impacted by delayed registrations, were up 36.0% y/y to 2,053 (up 16.6% y/y in 1Q26).G&T’s real-time survey of developers, which captures current trends on the primary market, shows a slowdown on the primary market demand in Mar-26, although sales were still up 8.6% y/y. Cumulatively, primary market sales were up 16.9% y/y in 1Q26. This largely reflects a low base effect from last year, driven by domestic political instability in Tbilisi.In total, 10,907 transactions were registered in Tbilisi in 1Q26, bringing the residential market value to US$ 958mn (+23.1% y/y).SupplyIn Mar-26, construction permits were issued for 17 residential projects, with total living area reaching 150,241 sq.m (-6.7% y/y). Notably, the living area of issued permits has contracted annually for the 6th consecutive month, signalling a normalization after previously elevated levels. Overall, living area of permits in 1Q26 was down 29.9% y/y.PricesIn Mar-26, primary market price increased moderately, up 0.4% m/m to US$ 1,403 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 0.1% m/m, reaching US$ 1,305 per sq.m.RentsIn Mar-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 9.9 per sq.m (-1.2% m/m), keeping rental yield high at 8.5%.

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Georgia submitted its application to host the prestigious event in 2025, demonstrating its commitment and enthusiasm for showcasing its viticultural heritage on the global stage.The session was attended by Levan Mekhuzla, Chairman of the National Wine Agency.“The OIV is the most important organisation in the field of viticulture and winemaking. This decision will once again underline Georgia’s prominent place on the world map of wine culture – a country of great viticultural and winemaking tradition. Ultimately, this will contribute to the popularisation of Georgian wine and its establishment in the global market,” he stated.It is worth noting that Georgia has previously hosted international events organised by the International Organisation of Vine and Wine (OIV), notably the 33rd International Congress in 1962 and the 8th General Assembly in 2010.The OIV is an intergovernmental organisation comprising 51 member countries, including Georgia. Its activities include developing recommendations for viticulture and winemaking, improving wine production and grape processing techniques, and establishing international standards to foster excellence across the industry.

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According to the National Bank, the meeting was also attended by Ekaterine Mikabadze, First Vice-President of the National Bank of Georgia, and Aleksandre Khazaradze, Head of the Financial Markets Department.The central focus of discussions was the development of cooperation between BNY and Georgia’s financial sector, in particular, the expansion of partnerships with the country’s leading commercial banks: Bank of Georgia, TBC Bank, Basis Bank, Liberty Bank, Terabank, and Khalik Bank Georgia. The parties reviewed the progress achieved since BNY’s entry into the Georgian market in 2024 and discussed the prospects for deeper engagement.Particular attention was devoted to potential collaboration in the areas of foreign reserve management, custody services, and liquidity management solutions. The meeting also touched on Georgia’s macroeconomic outlook and current developments within the financial sector. The National Bank’s President took the opportunity to highlight the country’s robust macroeconomic fundamentals, the resilience of its banking system, and the reliability of its regulatory and compliance framework, including its high standards in anti-money laundering (AML) and financial stability.“Georgia continues to offer a stable and attractive environment for international financial institutions. We welcome further engagement with global partners, particularly in areas that support the development of financial markets and the efficient management of reserves,” said Natia Turnava.Sergei Kotov expressed a positive assessment of BNY’s business relationships in Georgia, underscoring the institution’s commitment to expanding cooperation with both the commercial sector and the National Bank. He emphasised BNY’s readiness to support the development of financial infrastructure and services in the country.According to the NBG, both parties affirmed their intention to continue their collaboration and to explore further opportunities for integrating Georgia’s financial system into global markets.

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Based on statistical data from both countries, tourism activity in the region is experiencing some correction compared to the previous year.According to Geostat, the number of international visitors to Georgia reached 994.8 thousand in 1Q26, which is 2.5% higher than in the same period last year. Of particular note is the 4% increase in tourist-type visits, which amounted to 997.5 thousand.In contrast, according to Azerbaijani state statistics, 484.4 thousand foreigners arrived in the country, which is 4.7% less than in 1Q25. This figure is almost two times lower than the number of visitors received by Georgia.Despite the increase in the number of visitors, tourism revenues in Georgia decreased. Total spending amounted to GEL 2.2 billion, which is a 5.2% decrease. The average cost per visit decreased by 5.1% and amounted to 1,897.1 GEL.A similar trend is observed in Azerbaijan, where spending by foreigners decreased by 14.8% and amounted to 511.7 million manat. The largest decrease in the structure of expenses was recorded for accommodation services (-25.4%).Russia remains the main export market for both countries. In Georgia, 202.4 thousand visitors from Russia were recorded (20.3% share).In the case of Georgia, important players are Turkey (18.5%) and Armenia (11.8%). In Azerbaijan, the spending of tourists arriving from Turkey increased by 6.4%, while the spending of incoming flows from India decreased by 3 times.Interestingly, 83.6% of visits to Georgia are repeat visits, and the average age of visitors ranges from 31-50 years. In Azerbaijan, the largest share of spending (234.6 million manat) falls on transport services.

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The undertakings concerned are active in the supply and distribution of automotive products. For the purposes of the competitive assessment, the Agency assessed the effects of the transaction on the markets for automotive batteries, tires and lubricants, considered at the import level.In 2025, a total of 138 undertakings were active in the automotive tire market nationwide at the import level. The total market size amounted to GEL 190 730 782 (customs value). The Herfindahl-Hirschman Index (HHI) stood at 1293.3 prior to the concentration and is expected to increase to 1334.2 following its implementation, resulting in a change of ΔHHI = 40.9.With regard to automotive lubricants, in 2025 a total of 245 undertakings were active at the import level in Georgia. The total market size amounted to GEL 149 894 366 (customs value). The Herfindahl-Hirschman Index (HHI) was 309.5 prior to the transaction and is expected to increase to 343.3 following its implementation, corresponding to a ΔHHI of 33.8.As regards automotive batteries, 119 undertakings were active at the import level nationwide in 2025. The total market size reached GEL 69 623 714 (customs value). The HHI amounted to 1344.3 prior to the transaction and is expected to increase to 1551.4 post-transaction, resulting in a ΔHHI of 207.1.The Agency’s assessment indicates that the market for automotive lubricants at the import level is characterised by a low level of concentration, with only a limited increment in the HHI. By contrast, the markets for automotive tires and batteries are moderately concentrated, with HHI levels slightly exceeding the threshold for low concentration. In both cases, however, the increment in concentration (ΔHHI) remains below 250, indicating that the transaction does not raise serious doubts as to its compatibility with the competitive environment.In 2026, the Georgian Competition and Consumer Agency approved a total of 5 concentrations.

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GeoStat reports that sectors such as manufacturing, information and communication, professional, scientific and technical activities, mining, construction, and transport and warehousing made notable contributions to this growth in March 2026.Conversely, a decline was observed in the administrative and support services sector, as well as in hotels and restaurants.

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These permits cover the construction of buildings and structures with a combined area of 2,367.6 thousand square metres. GeoStat reports that nearly three-quarters of these permits are concentrated in four regions, with Tbilisi accounting for 48.7 per cent of the planned construction activity, followed by Kvemo Kartli at 10.1 per cent, and Kakheti and Mtskheta-Mtianeti regions each representing 7.8 per cent.Notably, during the first quarter of 2026, permits were issued for a diverse range of projects, including multifunctional residential complexes, shopping centres, hotels, industrial facilities, agricultural buildings, and other structures.However, the agency’s report also indicates a slight decrease in the number of facilities put into operation. A total of 683 facilities, covering an area of 722.5 thousand square metres, were commissioned in the same period, a 2.1 per cent decline compared to January-March 2025.More than two-thirds of these operational facilities are located in four regions: 31.8 per cent in Tbilisi, 13.8 per cent in Mtskheta-Mtianeti, 12.3 per cent in Kvemo Kartli, and 10.7 per cent in Kakheti.

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