Weekly Market Watch

Georgia’s economy grew 6.2% y/y in Apr-26
Georgia’s economy expanded by 6.2% y/y in Apr-26, bringing average real GDP growth to a robust 8.3% y/y in 4M26. April growth continued to be broad-based, led by manufacturing, ICT, transport & storage, trade, and financial services. Temporary weakness in construction and mining partly weighed on headline growth but is expected to reverse as investment activity strengthens. We maintain our 2026 real GDP growth forecast at 7.0% (see latest macro forecasts here).

Bank lending increased by 14.1% y/y in Apr-26
Georgia’s banking sector continued to demonstrate solid growth dynamics in Apr-26. The total loan portfolio increased by 14.1% y/y (excluding FX effects) to GEL 72.9bn (US$ 27.1bn), holding close to the robust 14.9% y/y pace of March. By segment, lending to legal entities grew by 11.7% y/y (excluding FX effect) in Apr-26, compared to 13.2% y/y a month earlier, while retail loans growth remained strong at 16.4% y/y (+16.5% y/y in Apr-26). Loan dollarization held steady at a low 42.5% (flat m/m and -0.77ppts y/y) in Apr-26.
Funding trends stayed favorable, with deposits up 20.0% y/y (excluding FX effects) to GEL 70.0bn (US$ 26.0bn) in Apr-26, edging higher from 19.4% y/y in March. By currency, GEL deposits rose a strong 33.0% y/y (vs. 34.3% y/y in Mar-26), while FX deposits grew 8.1% y/y (vs. 6.1% y/y in Mar-26). As a result, deposit dollarization reduced to 46.4% (-0.17ppts m/m and -5.74ppts y/y) in Apr-26.

NBG purchased US$ 333.3mn in Apr-26
NBG intervened on FX market and purchased US$ 333.3mn through BMatch platform in Apr-26. Overall, the NBG’s net purchases reached US$ 833.0n in 4M26.