Category: Economy

Kutaisi International Airport is undergoing a significant transformation with the construction of a new runway. This development, supervised by the Ministry of Economy, aims to enhance the airport’s capacity and accommodate larger aircraft. The project, funded with GEL 7.2 million, is expected to bolster the airport’s role as a key aviation hub in Georgia. With a remarkable 109% increase in passenger traffic in 2023, the new runway will further support…

In a surprising move, the US Federal Reserve has slashed its key lending rate by 50 basis points, just weeks before the upcoming presidential election. This decision marks the first rate cut since the COVID-19 pandemic and aims to lower borrowing costs across the board. The rate cut, which brings the central bank’s benchmark rate to between 4.75% and 5.00%, is expected to have significant implications for the economy and…

In a significant move to enhance trade and transportation links, Georgia and China have signed a Memorandum of Understanding (MoU) to advance the Middle Corridor. The agreement, signed by Georgian Economy Minister Levan Davitashvili and Zhao Chenxin, Vice Chair of the National Development and Reform Commission of China, aims to boost the development of the multimodal transport corridor connecting China to Europe through the South Caucasus. This initiative is expected…

The National Bank of Georgia (NBG) has decided to keep its refinancing rate steady at 8%, a move aimed at controlling inflation and stabilizing the economy. This decision reflects the bank’s cautious approach to monetary policy, ensuring that inflation remains close to its target rate in the medium term. The NBG’s strategy includes monitoring economic indicators and adjusting policies as necessary to mitigate inflationary pressures, particularly those arising from global…

Georgia’s economy experienced a significant boost in July 2024, with real GDP increasing by 13.0% compared to the same period last year. This impressive growth follows a 7.5% rise in June and contributes to an overall 9.7% growth for the first seven months of the year. The surge in economic activity was driven by key sectors such as construction, manufacturing, information and communications, professional and scientific activities, and trade. However,…

In the second quarter of 2024, Georgia witnessed a significant decrease in its unemployment rate, which fell to 13.7%. This marks a notable improvement from the previous year’s rate of 16.7%. The National Statistics Office of Georgia (Geostat) reported that the number of unemployed individuals decreased by 47.2 thousand, bringing the total to 219.7 thousand. This positive trend reflects the country’s ongoing efforts to boost employment and economic stability. Factors…

In a significant economic development, 69.5% of Georgia’s exports are now directed to the Commonwealth of Independent States (CIS) countries. This shift highlights the growing economic ties between Georgia and its neighboring CIS nations. According to a recent report by Galt & Taggart, this increase in exports to the CIS is accompanied by a notable rise in imports, which grew by 7.2% year-on-year. The report also indicates a decrease in…

The Government of India has taken a significant step in the financial sector by establishing the country’s first International Financial Services Centre (IFSC) in GIFT City, Gujarat. This initiative aims to position GIFT IFSC as a global financial hub, providing a platform for international financial services and integrating them with the Indian economy. With its unique status under the Foreign Exchange Management Act, GIFT IFSC allows financial transactions in multiple…

In a significant move to enhance the capabilities of the non-banking sector, the National Bank of Georgia has introduced a specialized training module. This initiative, part of the bank’s educational projects, aims to address the unique challenges faced by non-banking institutions. The first series of trainings were conducted in the regions of Imereti, Samegrelo, and Adjara, providing participants with valuable insights and practical knowledge. Empowering the Non-Banking Sector The National…

The Georgian Startup Summit and Startup World Cup Regional Competition are set to take place on August 20-21 in Batumi. This event is a significant gathering for startup enthusiasts, offering unparalleled opportunities for networking, learning, and celebrating innovation. The summit will feature a variety of activities, including pitch competitions, high-level talks by international venture capitalists, and a beach party. The winner of the regional competition will advance to the global…