Why did electricity prices increase? – G&T explains the reasons for the tariff increase and the expected economic effects

The decision, which will come into effect tomorrow, April 3, will be in effect for 12 months and will only apply to holders of official passports. The rules for visa-free travel to the Schengen area for other Georgian citizens remain unchanged.According to the Federal Council, the move is related to the implementation of the EU’s revised visa suspension mechanism.“The EU has strengthened the visa suspension mechanism for third countries, which allows visa requirements to be imposed on the basis of a deterioration in foreign relations or a violation of fundamental rights. The EU decided to apply these provisions to Georgia due to legislative changes adopted last year,” the statement said.The Swiss side stressed that as a member of the Schengen area, it is obliged to reflect the changes in EU legislation in its own regulations. As part of the decision, several articles of the visa facilitation agreement between Switzerland and Georgia have also been suspended.The EU has suspended visa-free travel for Georgian diplomats and civil servants for a period of one year after certain legislative initiatives adopted in Georgia have drawn criticism from Western partners.

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The Central Banking Meetings forum in Kuala Lumpur brought together central bankers and senior representatives from Japan, Malaysia, India, Turkey, Romania, Azerbaijan, New Zealand, Switzerland, South Korea, Singapore, Saudi Arabia, China, and other countries.According to the National Bank of Georgia, the event was designed to facilitate the sharing of practical experience amongst central bank leaders and to deepen cooperation, with a view to developing joint strategies, strengthening regional integration, and introducing innovative solutions.Speaking during the panel discussions, Ekaterine Galdava drew attention to the reforms undertaken by the National Bank of Georgia and to the importance of regional payment integration.She noted that the foundation of a successful, interoperable payments ecosystem rests upon modern domestic payments infrastructure, shared technical standards, and effective regional coordination.“The National Bank of Georgia is actively working on upgrading its Real-Time Gross Settlement (RTGS) system. The upgraded system will have the technical capacity to operate on a 24/7 basis and will support multi-currency transfers. Furthermore, the introduction of an Instant Payment System (IPS) is planned for the end of 2026, which will enable users to carry out transactions within seconds, at any time of day. Both systems will be built on the ISO 20022 messaging standard, which will significantly improve the interoperability of payment systems both domestically and at the international level,” said Ekaterine Galdava.The NBG Vice President also spoke about Georgia’s strategic location and the significance of the Middle Corridor, noting that the country is well-positioned to become a regional financial hub between Europe and Asia.“Georgia’s strategic location affords us a unique opportunity to become the region’s financial hub between Europe and Asia. Real-time payments and the integration of payment systems will, in turn, facilitate trade growth, reduce transaction costs, and strengthen regional economic ties,” she stated.During the panel discussion held as part of Central Banking Meetings, Ekaterine Galdava also addressed the introduction of financial innovations in Georgia, underlining that the National Bank of Georgia is actively fostering financial innovation across both regulatory and technological development fronts.She further noted that the NBG has already introduced a regulatory framework for digital banks and virtual asset service providers, established regulatory and technical sandboxes, and developed a fintech development strategy, all of which serve to ensure the safe integration of artificial intelligence within the financial sector.The panel discussion held as part of the Central Banking international conference also featured the participation of Aleksandre Ergeshidze, Head of the Specialised Risks Department at the NBG. The panel addressed cyber threats facing the financial sector and the means to tackle them, as well as practical strategies for cyber risk management and the role of central banks in this regard.

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Debating a report of the Congress fact-finding visit to Georgia on 24-25 September 2025, presented by Stewart Dickson (United Kingdom, ILDG), the Congress deplored the fact that the  local elections held on 4 October 2025 were affected by a lack of political dialogue and competitiveness, widespread boycotts, frequent and problematic changes to electoral law, underrepresentation of women, and attempts to ban, intimidate and arrest leaders and candidates of opposition parties.It regretted that dissenting voices – notably the youth, civil society, and the media – faced growing intimidation, arrests and criminal proceedings, restricting fundamental freedoms, and that for the first time in decades, the 2025 local elections were held without credible international and domestic observation missions, including by the Congress, while the rights of observers were restricted.In its resolution and recommendation, the Congress stressed that the Georgian authorities failed to foster dialogue and build the necessary trust in the 2025 electoral process, turning the elections into single-party contests in half of the municipalities with allegations of pressure of opposition candidates in the rest. At the same time, attempts to ban opposition parties, as well as arrests and criminal proceedings against opposition representatives further silenced political pluralism.The Congress believes that the corrosive effect of all these issues did not provide the democratic conditions for inclusive, free and fair elections and further estranged Georgia from its European commitments, notably the European Charter of Local Self-Government.Congress members called on the Georgian authorities to urgently resume political dialogue at all levels of government, through an inclusive political process which engages all stakeholders, to reduce polarisation and restore the checks and balances essential in a pluralist democracy. The authorities were also urged, inter alia, to stop criminalising opposition voices and rescind the amendments facilitating the ban of opposition parties; implement outstanding Congress Recommendations and Venice Commission opinions and rebuild genuine local democracy in line with the European Charter of Local Self-Government; and repeal amendments to the Election Code that are in contradiction with European democratic standards and those restricting election observation, as well as all legislation in breach of human rights.The Congress highlighted its commitment to continue political dialogue with the Georgian authorities, notably via the urgent organisation of a mission to monitor the application of the European Charter of Local Self-Government in Georgia.

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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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