Investment News

Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment. Information in this issue was taken from BM.ge

Central bank holds rate at 8%
The National Bank of Georgia (NBG) kept the refinancing rate unchanged at 8% at its March 12 meeting, citing YoY inflation rate of 2.4% in February, which it said remained below its target of 3%. Core inflation was slightly lower at 2%, and inflation for domestically produced goods and services, which it noted “tends to be stickier and better reflect long-term inflation expectations,” came in at 3% in February.
The national bank further noted that amid “increased pressure from international markets, inflation is gradually converging toward its target level” and is expected to stabilize around 3% in the medium term. It also reported higher-than-expected economic growth in January, coming in at 11.1%.
The NBG noted that “elevated global uncertainty” due to tariff policies in international markets had increased the likelihood of “supply chain disruptions and the emergence of a global high-inflation environment.” This, along with continued concerns of domestic “demand-driven price pressures,” led the bank’s decision to maintain a “cautious approach” and keep its rate unchanged at 8%.
The next meeting of the Monetary Policy Committee will be held on May 7.

FDI down nearly 30% in 2024
Foreign direct investment (FDI) in Georgia amounted to $1.3 billion in 2024, down 29.9% from adjusted data of 2023, according to a recent report by Geostat. The national statistics office named a decrease in equity and reinvestment as the main reason for the reduction.
In 2024, FDI in the form of equity capital came in around $483 million (down 60% YoY), and reinvestments totaled $1.17 billion (down 26% YoY). The three largest investor countries were the United Kingdom (33.6%), Malta (13.2%), and Netherlands (11.4%).
The share of three major economic sectors in FDI reached 63.9% in 2024. The largest share of FDI was registered in the financial and insurance activities sector, totaling $526.5 million (39.5%), followed by manufacturing with $170.2 million (12.8%), and real estate with $155.3 million (11.6%).

Construction cost index up 5.9% in January
The Construction Cost Index (CCI) increased 5.9% YoY in January, says preliminary data recently released by Geostat. This change was largely caused by the 22% YoY increase in average monthly nominal wages of employees in the construction sector and a 3.6% YoY increase in the prices of construction materials.
In detail, it notes that:
● The residential segment index decreased by 2.2% compared to the previous month and increased 9.3% YoY.
● The non-residential segment index decreased by 9.3% compared to the previous month and 2% YoY.
● The civil segment index decreased by 2.2% compared to the previous month and increased 5.4% YoY.

Remittances from Russia down 45% in February
Remittances from Russia were down 45% YoY in February, according to the latest monthly report from the National Bank of Georgia (NGB). In its report, which puts total money transfer inflows down 5% YoY at $252.3 million, the central bank also reported a significant bump in remittances from the U.S. – up 14% at $47.3 million.
The EU continued to be the largest source of money transfers, accounting for $111 million, or 44% of remittances, in February. Italy, Germany, and Greece came in as the top source countries.
Georgia transferred $28.7 million overseas in February.

Georgian exports up 4% in February
In January and February 2025, Georgian exports were up 4% YoY and equaled $835.4 million, says the latest preliminary data released by Geostat. The share of domestic exports in total exports came in at 47% ($388.5 million), or 1% lower than the same period in 2024.
Top trade partners were Russia ($67.4 million), Türkiye ($40.5 million) and China ($33.8 million).
Passenger cars continued to lead Georgia’s exports, with a total value of $285.2 million (up 9% YoY). Precious metal ores and concentrates came in second, equaling $39.7 million (up 17% YoY), followed by alcoholic beverages at $29.4 million (down 16% YoY).

Refinancing fees reduced
The maximum commission charged by financial institutions for refinancing loans will be capped at .5% starting in May, says the National Bank of Georgia following its recent amendments to the “Rules for the Protection of Consumer Rights in the Provision of Services by Financial Organizations.”
The decrease in fees, which were previously capped at 2% for individuals and legal entities with total liabilities of up to GEL 2 million, are part of efforts to “lower the cost of transferring liabilities between financial organizations, fostering increased competition and offering more favorable conditions for consumers,” said the central bank.

Electric vehicle registrations up 79% in 2024
Electric vehicles registration was up 79% in 2024, coming in at 3,993 units. While the increase is notable in annual terms, electric vehicle registrations continue to make up a small portion of vehicles in the country, accounting for only 0.5% of the total number of passenger cars registered in the country last year.
According to official statistics, the largest number of electric vehicles is registered in Tbilisi (6,932), followed by Imereti (512), and Adjara (387).
Along with the increase in the number of electric vehicles registered in the country, last year also saw a record import of electric vehicles. In 2024, the country imported 5,454 electric vehicles worth $107 million, more than double the previous year’s value of $55.6 million.