TBC Capital Predicts GEL Stability

According to the statement, this memorandum has proved an excellent example of how two parties with different identities can achieve task-oriented collaboration.“This partnership is founded on equality, responsibility and coordination, which places the interests of Tbilisi’s and Georgia’s population above party interests. We have reached a particularly noteworthy agreement in Tbilisi, where we have presented agreed candidates for the mayoralty and city council chairmanship.The mayoral candidate, Irakli Kupradze, is a young, conscientious politician with an unblemished past and reputation, who has always stood on the front lines in struggles against various regimes. We are confident that Irakli, together with our joint team, will be a worthy, conscientious mayor of Tbilisi, whose primary concern will be improving the lives of each Tbilisi resident.The candidate for city council (Sakrebulo) chairman, Giorgi Sharashidze, is an experienced professional who has always stood and continues to stand as a guardian of Tbilisi’s interests through his principled approach.This memorandum has proved an excellent example of how two parties with different identities can achieve task-oriented collaboration,” reads the joint statement from Gakharia for Georgia and Lelo parties.

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According to the report, Georgia is projected to enjoy the highest GDP growth in the Eastern Europe and Caucasus region, which encompasses Azerbaijan, Armenia, Georgia, Moldova, and Ukraine, with an expected increase of up to 7% this year.“A 1% decrease in growth forecasts since May was observed in Azerbaijan, where GDP is now expected to grow by 2% in 2025 and 2.5% in 2026. In Ukraine, the decline was 0.8 percentage points, with growth forecast at 2.5% this year, but expected to double to 5% in 2026. Moldova’s GDP growth has decreased marginally by 0.3 percentage points to 1.5%, yet is forecast to rise to 3.8% in 2026. Meanwhile, in Turkiye, GDP growth is expected to be 3.1% by the end of this year, an increase of 0.3 percentage points, with growth reaching 3.2% in 2026.Overall, the economies of the countries where the EBRD operates are predicted to grow by 3.1% this year, a slight increase of 0.1% since May, marking a notable improvement of one percentage point.By 2026, growth is expected to reach 3.3%, a marginal decline of 0.1 percentage points. The London-based analysts noted that the region’s economies “are under pressure from ongoing global geopolitical tensions, increased competition from China in export markets, and limited fiscal space,” the report stated.

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Demand in Aug-25, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 2,858 units, of which:• Sales on the secondary market declined slightly by 0.3% y/y (down 0.3% y/y in 8M25).• Sales on the primary market, where data are impacted by delayed registrations, decreased by 17.8% y/y (up 1.8% y/y in 8M25).According to the survey of developers, which captures current trends on the primary market, showed 12.2% y/y decrease in Aug-25, mostly due to last year’s high base. Cumulatively, primary market sales were up 0.5% y/y in 8M25 according to this surveyIn total, 25,636 transactions were registered in Tbilisi in 8M25, bringing the residential market value to USD 2bn (+5.2% y/y).SupplyIn Aug-25, construction permits were issued for 22 residential projects, with total living area reaching 145,928 sq.m. (+6.9% y/y). Overall, permit issuance in 8M25 was up 3.3% y/y.PricesIn Aug-25, primary market price continued to grow with a slow rate, up by 0.1% m/m to US$ 1,341 per sq.m.. Likewise, the average price on the secondary market (for new buildings built with permits issued after 2013) was up by 2.8% m/m to US$ 1,299 per sq.m..RentsIn Aug-25, price for renting an average apartment (50

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According to the central bank, international reserves remain a crucial guarantee of Georgia’s macroeconomic stability, and the NBG increases them when market conditions permit.The foreign exchange interventions carried out in 2025 are as follows: January–February – No net purchases March – $101.7 million April – $266.4 million May – $245.4 million June – $266 million July – $416.9 million August – $199.6 million The National Bank will release updated foreign exchange market data on October 27, 2025.For comparison, as of the end of August, the Central Bank of Azerbaijan held over $11 billion in international reserves, while the Central Bank of Armenia reported reserves of $4.2 billion.

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His summons followed that of German Ambassador Peter Fischer, who was called to the ministry a day earlier, on September 24.According to the Foreign Ministry, Fischer was reminded of the Vienna Convention, with Georgian officials stressing that an ambassador should not interfere in the internal politics of a host state. The ministry also expressed concern about what it described as “attempts to promote a radical agenda.”Following the meeting, Fischer firmly rejected the accusations. Writing on social media, he stated that the responsibility for the deterioration of German-Georgian relations lies with the Georgian government and ruling party representatives, whom he accused of blocking Georgia’s European integration process.“I rebuffed the groundless attacks against me in detail, and I blamed the government and representatives of the Georgian Dream for the new low point in German-Georgian relations. Their actions and rhetoric caused this, and they are blocking the path leading to the European Union. They did not want to listen. I am not a radical. Germany remains a friend of Georgia,” he wrote.,” Fischer wrote.Diplomatic history underscores the significance of these developments. Since the establishment of relations with Germany in April 1992 and with the United Kingdom later that same month, this marks the first time ambassadors from both countries have been formally summoned by the Georgian Foreign Ministry.

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In 2024, the sector grew by 9%, contributing 5.9% to the country’s GDP. Growth has been driven largely by intensifying trade flows between Europe, the Caspian region, Central Asia, and China, positioning Georgia as a key transit hub in the region.Cargo turnover has been steadily increasing since 2015, with a compound annual growth rate (CAGR) of 5% between 2015-2024. Looking ahead, TBC Capital forecasts that cargo turnover will expand at a slightly faster pace of 5.5% CAGR between 2025-2028, reflecting stronger domestic demand, export activity, and enhanced trade with Central Asia.This surge in transportation has also boosted demand in the warehousing sector. Current warehouse capacity in Georgia stands at 2.2 million sq. m., 90% of which is dry storage and 10% refrigerated. Ownership dominates the market, with 67% of warehouses used directly by owners and 33% leased. Rental rates range from $3–6 per sq. m., with Class A facilities reaching $7–8 per sq. m.TBC Capital projects that demand for warehousing services will increase by an average of 9% annually between 2025-2028, fueled by both local and transit cargo growth.The study also highlights the Middle Corridor, which connects Europe and Central Asia through Georgia. While the corridor’s importance has grown amid geopolitical shifts, it remains less competitive than alternatives due to infrastructure limitations and administrative hurdles. However, upcoming infrastructure projects are expected to double the corridor’s throughput from 6 to 12 million tons, with forecasts suggesting that by 2030, regional economic growth will fully absorb its capacity.In addition, the Zangezur Corridor has emerged as a potential alternative transit route. Although its impact is expected to be limited in the short term, in the medium term, it could divert part of the Azerbaijan-Turkey and Turkey-Central Asia cargo flows currently passing through Georgia.

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The delegation will be led by Bernd Föringer (Germany, EPP/CCE), President of the Chamber of Local Self-Government, and Stewart Dixon (United Kingdom, ILDG), the Congress’s spokesperson on the observation of local and regional elections. Expert Professor Tanya Gropp will accompany them.During the two-day visit, the delegation will hold meetings with the Chairman of the Central Election Commission, the First Deputy Public Defender, and the First Deputy Chairman of the Georgian Dream Committee on Regional Policy and Self-Government.They will also exchange views with Georgia’s National Delegation to the Congress, the National Association of Local Self-Government, as well as representatives of political parties, NGOs, and the media.The Council of Europe underlined that the visit should not be interpreted as an endorsement of the legitimacy or political positions of those involved in the discussions.

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The statement reads that disinformation misleads the public and undermines diplomatic missions.“We firmly reject the baseless and damaging accusations about the role and activities of some diplomatic missions in Georgia. Such disinformation misleads the public and undermines the possibility for our diplomatic missions to carry out our duties.For diplomats, meeting a broad range of actors – government, opposition, civil society and citizens at large – is a normal part of diplomatic work, and fully consistent with the Vienna Convention. We do not support any particular political party, and claims that we support violence and extremism are simply not true. As a matter of fact, we appeal to all actors to reject and condemn any form of violence.We urge all political leaders to refrain from divisive rhetoric and to work towards the de-escalation of tensions,” reads the statement by twenty-seven diplomatic missions.

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