BOG Launches $100 MLN Issuance Program

TBC Capital highlights that the improvement in the current account is mainly driven by growth in services exports, particularly in the information and communication sector.Additionally, slower import growth and increases in remittances and tourism revenues support the surplus. Including reinvestments, the current account deficit is projected at 2.7% of GDP in 2025, the lowest level recorded to date.Economic growth slowed in the second half of 2025, in line with expectations of normalization around long-term trends. For 2026, the Russia-Ukraine war remains a significant factor, with both positive and negative potential impacts on Georgia’s economy. TBC Capital’s baseline scenario projects real GDP growth of approximately 4.5% for 2026.Regarding the lari, three main factors supported appreciation in 2025: global dollar weakness, increased net foreign currency inflows, and reduced domestic demand for foreign currency, reflected in higher lari deposits and growing dollarized loans. The National Bank reportedly purchased $2.5 billion in 2025, resulting in total foreign exchange reserves of $6.2 billion and net reserves of $3.2 billion.TBC Capital notes that the lari is still undervalued against the dollar and trade partners, supporting potential further appreciation. However, a post-war scenario could temporarily reorient currency flows, which may exert short-term pressure. Considering reserve levels and the central bank’s policy to limit excessive exchange rate fluctuations, the lari is expected to depreciate only slightly in 2026.Inflation slowed from November, reaching 4% year-on-year in December 2025. TBC Capital projects inflation to rise at the start of 2026, then gradually slow from March, reaching 3.5% by year-end. Key risks include possible increases in electricity tariffs and food prices in the spring, which could affect the inflation trajectory.

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Compared to November 2025, the overall hotel price index rose by 4.3%, with the largest increases recorded in Mtskheta-Mtianeti, Samtskhe-Javakheti, and Tbilisi. Year-on-year, the index increased by 3.9%, with Samtskhe-Javakheti, Tbilisi, and Adjara seeing the most significant rises.The study reports that in December 2025, the average prices were 99 GEL for family-type hotels, 150 GEL for 3-star hotels, 245 GEL for 4-star hotels, and 504 GEL for 5-star hotels. The highest average rates were observed in Samtskhe-Javakheti (1040 GEL), Mtskheta-Mtianeti (1001 GEL), and Tbilisi (639 GEL).

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Meanwhile, the governments of Armenia and the United States have agreed on the framework for implementing the “Trump Road,” a project scheduled to begin construction in the second half of 2026.Despite these developments, officials in Armenia warn that the risk of renewed conflict remains high. Experts note that both Yerevan and Baku are eager to convince the international community that negotiations are progressing, though real progress has yet to materialize.Ahead of the June parliamentary elections, Armenian Prime Minister Nikol Pashinyan seeks to present himself as a peacemaker who will establish diplomatic relations with Azerbaijan and Turkey and open regional transportation corridors.

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According to the official statement, Zodelava is a lawyer by profession. She received her education at Ivane Javakhishvili Tbilisi State University, the University of Administrative Sciences in Speyer, and the University of Bremen. She has many years of experience working in international organizations and state institutions, having served at various times as a project manager for the German International Cooperation Society (GIZ).Until now, Zodelava served as the head of the State Grants Management Agency.It remains unknown who will succeed her as the new head of the Agency.On 20 February 2025, the Georgian Parliament approved, in its third reading, legislation establishing the Legal Entity of Public Law (LEPL) – State Grants Management Agency, which is responsible for issuing grants to civil society organizations.

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In Q4 2025, the highest number of visitors came from Russia (21.8% of total arrivals), followed by Turkey (18.6%) and Armenia (14.9%). Most travelers entered Georgia by road (56.1%), while air travel accounted for 43.2%.Overall, Georgia welcomed 6.9 million visitors in 2025, marking a 6.2% increase. Of these, tourist arrivals reached 5.5 million (+8.4%), while same-day visits declined by 2.2% to 1.3 million.

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Share of the domestic exports in total exports constituted 46.2 percent and amounted to USD 3 billion 367 million, 12.5 percent higher year-on-year.As of the document, in 2025 the share of the top ten trading partners by domestic exports in the total domestic exports of Georgia amounted to 68.9 percent. The top partners were Russia (USD 700.7 million), China (USD 301.9 million) and Türkiye (USD 298.8 million).In 2025 precious metal ores and concentrates claimed the first place in the list of top domestic export items, equaling USD 378.9 million, or 11.3 percent of total domestic exports. The domestic exports wine of fresh grapes totaled USD 266.5 million and their share in the total domestic exports amounted to 7.9 percent. The domestic exports of spirituous beverages occupied the third place, standing at USD 236.8 million and constituting 7.0 percent of the total domestic exports.

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Lion Finance Group (BGEO LN) shares closed at GBP 96.40/share (+4.90% w/w and +4.67% m/m). More than 266k shares traded in the range of GBP 90.75 - 96.95/share. Average daily traded volume was 53k in the last 4 weeks. The volume of BGEO shares traded was at 0.61% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 39.90/share (+1.92% w/w and -1.85% m/m). More than 357k shares changed hands in the range of GBP 38.05 - 39.90/share. Average daily traded volume was 51k in the last 4 weeks. The volume of TBCG shares traded was at 0.64% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 33.35/share (+7.06% w/w and +11.17% m/m). More than 302k shares traded in the range of GBP 31.00 - 33.65/share. Average daily traded volume was 56k in the last 4 weeks. The volume of CGEO shares traded was at 0.87% of its capitalization. 

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The prices for mining and quarrying increased by 0.2 percent compared to November 2025, resulting in a 0.01 percentage point contribution to the overall monthly PPI change. In the same period, the prices for manufactured products increased by 0.2 percent, contributing 0.19 percentage points to the monthly index change. Within the group, a noteworthy price increase was registered for food products (0.4 percent) and basic metals (3.0 percent). Besides, the prices increased for electricity, gas, steam and air conditioning by 1.0 percent, contributing 0.1 percentage points to the monthly index change.The annual PPI rate was mainly affected by price changes for the following products:• Mining and quarrying: the prices were 22.4 percent higher, contributing 1.44 percentage points to the overall annual index change. Within the group, the prices were higher for the subgroup of metal ores (30.8 percent);• Manufactured products: the prices increased by 4.8 percent, contributing 3.83 percentage points to the overall annual index increase. There was a notable increase in the prices for food products (11.5 percent) and basic metals (5.3 percent);• Electricity, gas, steam and air conditioning: the annual price increase amounted to 7.6 percent, which contributed 0.79 percentage points to the annual index change;• Water supply, sewerage, waste management and remediation services: the annual price increase amounted to 1.5 percent, which contributed 0.04 percentage points to the annual index growth. 

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