Strong Growth Persists Amid Inflation Pressures — TBC Capital’s Latest Macro Update
According to preliminary data from Geostat, Georgia’s real GDP grew by 7.5% year-over-year in April. For the first four months of 2025, the average growth rate stood at 8.8%, remaining above our initial expectations. As highlighted in our May monthly update, most early indicators suggest that economic activity further accelerated in May. In particular, robust growth in total non-cash spending and non-resident expenditures stands out, while only a minor decline is observed in spending by migrants and on durable goods.
As of April, credit activity remains strong. However, especially when adjusting for inflation, a normalizing trend in lending growth has been evident since February across both household and business sectors. Exports also recorded a significant year-over-year increase, contributing to overall economic momentum.
In this context, the International Monetary Fund has revised its 2025 real GDP growth forecast for Georgia from 6.0% to 7.2%. Over the medium term, the Fund expects growth to moderate and stabilize around 5%.
Historically, high economic activity has been associated with elevated inflation, particularly in small, open economies like Georgia, where imports—especially of intermediate goods—play a substantial role in domestic production and services. Recent consumer price dynamics present a mixed picture. In May, headline inflation reached 3.5% year-over-year, and 0.4% month-over-month. When seasonally adjusted and annualized, this equates to 5.3%, exceeding the National Bank’s 3% target.
The primary driver of this inflationary uptick remains higher prices for domestically produced and mixed goods, particularly food. In contrast, the growth in service prices noticeably decelerated in May after several months of acceleration. Notably, our analysis indicates that elevated domestic demand historically manifests most clearly in service inflation. Simultaneously, global declines in oil and other import prices contributed significantly to disinflationary pressures in May, as anticipated.
Overall, price trends remain aligned with our projections. We maintain our forecast of inflation rising to approximately 4.1% by year-end. This implies a peak in price growth around October–November, followed by a gradual return to the 3% target range in subsequent months. Additionally, given a recent slight increase in inflationary risks, and considering the current foreign exchange market surplus and broader factors supporting the lari, we anticipate further appreciation of the Georgian national currency against the US dollar.
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Georgia’s Women’s Rugby 7s Team Joins Europe’s Elite – Rugby Europe Championship Begins
Historic days are ahead for Georgia’s Women’s Rugby 7s and for Georgian rugby as a whole. From June 13–15, our national team will compete in the Rugby Europe Championship for the first time.
Jaba Malaguradze and his team earned their place among Europe’s elite through tireless dedication and hard work. We hope that Georgia’s Women’s 7s squad will soon establish themselves as a strong presence at the top level of European rugby.
In the first stage of the Rugby Europe Championship, held in Makarska, Croatia, Georgia will compete in Group A against France, the Czech Republic, and Ireland.
On June 13, Georgia will play two matches:
- France vs Georgia (14:20 Tbilisi time)
- Czech Republic vs Georgia (20:30 Tbilisi time)
On June 14, the team will conclude the group stage with a match against:
- Ireland (12:00 Tbilisi time)
In preparation for the championship, Jaba Malaguradze’s squad trained in Germany and France, holding six friendly matches in Bonn and participating in the traditional international tournament in Tours, France.
Squad for Rugby Europe Championship:
- Salome Makasarashvili
- Teona Chitaishvili
- Ana Datiashvili
- Ana Poghosiani
- Manon Sagaradze
- Salome Sagaradze
- Mariam Goguadze
- Kira Danelia
- Lika Khufenia
- Nino Tsiklauri
- Ana Khabuliani
- Anastasia Akhvlediani
- Anna Rurua
Let us remind you: the Rugby Europe Championship consists of two stages – in Croatia and Germany.
TBC Bank proudly stands behind Georgia’s Women’s 7s team and supports the development of women’s rugby in Georgia. We wish our athletes great success in this important tournament and are deeply proud of each of them. These players have already proven the strength, motivation, and determination they possess – and the belief that no challenge is too great when you truly believe in your goal.
#TogetherWeWin
TBC Supporting Agribusiness – Shalva Ioseliani’s Beekeeping in the Village of Bashi
Bees play a vital role in the ecosystem. Without them, biodiversity declines, food chains are disrupted, and plant species face increasing threats. Fortunately, we still have the chance to enjoy one of the world’s oldest natural products – honey.
Shalva Ioseliani’s 800 beehives are thriving in a safe and healthy environment. Originally an electronics engineer who installed computing centers, Ioseliani turned to a new profession after the collapse of the Soviet Union.
“There was a boom in bee venom back then. It was widely used in the pharmaceutical and cosmetics industries, and Georgia was exporting it. We were producing bee venom extractors. But soon the demand dropped, so we shifted to breeding bee colonies,” recalls Shalva Ioseliani.
Today, in the village of Bashi in the Samtredia region, he runs a beekeeping farm that produces up to 20 tons of honey annually. His beehives are located in various villages across Samegrelo, Guria, and Imereti.
“The taste of honey differs even within a two-to-three-kilometer radius,” explains Shalva.
Sunny, warm, and dry weather is ideal for bees – under these conditions, both the quality and quantity of honey improve. In bad weather, bees struggle to leave their hives, nectar becomes scarce in nature, honey production drops, and the risk of bee mortality increases.
When you’re involved in an occupation where hard work alone isn’t enough and much depends on environmental factors, having a stable partner is essential. For over ten years, Shalva Ioseliani has been benefiting from TBC’s subsidized agrocredit.
“TBC’s support allows me to employ workers and manage the summer workload,” says the beekeeper.
According to Ioseliani, chestnut and acacia honey are the most in-demand types in Georgia.
“People are never fully satisfied with results—they always want more honey. I’m 64 now, and I plan to keep working in this field for another six years,” he says.
TBC Supports “Social Design Days” – A Conference by the Design Institute, June 16–17
With the support of TBC Education, the Design Institute will host a conference titled Social Design Days on June 16–17.
Social design is one of the most effective ways to address social issues through design and innovation, fostering collaboration and creating a better environment.
At the Social Design Days conference—organized by the Design Institute with the support of TBC—Georgian and international experts in the field will explore the importance of social design. The program will cover topics such as participatory design, sustainability, accessibility, public services, heritage, spaces, and urban and civic design.
The conference aims to promote cross-sector collaboration, knowledge-sharing, and the advancement of social design as a field. The more individuals and organizations engage with these issues, the more value and improved environments we can create together.
Social design emphasizes the accurate and collaborative resolution of problems. In Georgia—where challenges in education, urban development, and social inequality are particularly pressing—design has the potential to serve as a tool for systemic change. For this reason, the Design Institute team plans to launch ongoing educational initiatives in this direction.
TBC is committed to supporting educational projects that help people grow and advance. The brand’s mission is to inspire and empower those who believe they can shape their own story through education.
Social Design Days is being held in Georgia for the first time, with support from the Design Institute, Polish Graphic Design, and other partners. The conference is set to become a recurring initiative, expanding in the future through research projects, open calls, and thematic series.
See the full program at the link.
Project partners: Polish Graphic Design, TBC, Kona Books, GWS, GD Alco, Red Bull, Mac Georgia
Guest studios: Traffic Design Studio, Otwarte Studio, Centrala Studio, and many more.
Toshi: The Ice Manufacturing Company that Grew with TBC’s Support
“Toshi” — An Ice Manufacturing Company Developed with the Support of TBC Business
At first glance, ice production might sound simple — freeze water and sell it. But when it’s backed by thoughtful planning, strategy, and service rooted in core values, ice transforms from just a product into a way of doing business. That’s the story of Toshi, a company that began in 2015 as a small grant-winning idea and has since grown into one of the most trusted and long-term partners in Georgia’s HoReCa (Hotels, Restaurants, Cafés) sector.
The idea to create Toshi came to Ucha Kvezereli right after graduating from university, when he participated in a grant competition. The innovative concept — producing ice — may have sounded a bit odd at first. However, behind it was a clear understanding of market needs and a well-structured business plan. The company’s first machine produced only 80 kilograms of ice per day, and for distribution, Ucha relied on his father’s car.
As Ucha recalls, bar and café owners were initially skeptical. They believed anyone could just make ice in their own freezer. But over time, Toshi’s consistent service and quality changed those perceptions.
Today, the company produces up to 10 tons of ice daily, employs 34 people, and uses its own fleet of refrigerated trucks.
Over the years, the market expanded, and competitors emerged. Still, Toshi has maintained its position as a symbol of tailored, client-focused service.
Instead of standard distribution, Toshi built a logistics system customized to each client’s specific needs — whether that’s nighttime deliveries for bars, on-site service for festivals, or daily supplies for hotels.
Currently, Toshi covers about 40% of Georgia’s ice distribution market. However, monopolizing the market isn’t their goal. On the contrary, the company’s philosophy centers on stability, quality, and strong, reliable partnerships.
Today, Toshi supplies nearly 2,000 different product types — including disposable tableware, food items, hygiene products, and more. Around 300 organizations use their services: some rely only on ice, others on food products, and many on both.
TBC played a crucial role in Toshi’s development.
“In 2017, when we were producing about 200 kg of ice per day, we wanted to purchase a 1-ton capacity machine that would significantly increase our production. At the time, this was an ambitious goal — many didn’t believe such a quantity of ice could even be sold or that there was demand for it. But we believed — I believed — that the demand would grow, because we were creating a product essential for businesses. And TBC believed in us too.”
Looking ahead, Toshi plans to expand into agriculture. Their next step is to start greenhouse-based production of vegetables and greens.
Modeling the City: TBC Concept to Host Seminar on Tbilisi’s Landscape with Renowned Architect Renato Rizzi
In September 2025, with the support of TBC Concept, a seminar on landscape modeling in Tbilisi will be held as part of the “Stones” research program by “Ubani”. The seminar will be led by Italian architect and theorist Renato Rizzi and organized in collaboration with the team from IUAV University of Venice — Susanna Pisciella and Giorgia Antonioli.
This initiative aims to promote innovative methodologies in landscape modeling within the framework of the Ubani research program, focusing on Tbilisi’s unique terrain and its impact on the city’s overall morphology and urban structure.
Renato Rizzi’s approach to modeling is grounded in phenomenology and metaphysics. His models are not seen as simple design tools but rather as “instruments of thought” that support a deeper understanding of space and its inherent meanings.
The seminar will involve observing and studying Tbilisi’s landscape and creating models at various scales. A concluding exhibition will be held in February 2026 at the TBC Concept exhibition space.
The seminar and workshop are open to hobbyists, cultural enthusiasts, students, architects, urban planners, restorers, designers, sculptors, artists, geographers, cartographers, and other interested individuals.
Please note that space is limited, and participation requires pre-registration and selection through the following link.
The application deadline is June 27, 2025.
About Renato Rizzi:
A Venetian architect, theorist, and educator, Renato Rizzi is a full professor of architectural design at IUAV University of Venice and a member of the National Academy of San Luca in Rome. In 2018, he was awarded the Order of Merit of the Italian Republic.
Rizzi has lectured and taught internationally, including at Harvard University. His major architectural projects include the Grand Egyptian Museum, the Museum of Modern Art in Warsaw (MoMA), and the John Paul II Center in Krakow.
Completed works include:
- Area Sportiva Ghiaie (1984–1998)
- Museo del Futurismo (1992–2008)
- Casa dei Libri Barbarigo (2020–2023)
He is also the author of several significant publications, including Solemnidad de la Civilidad and Il Daìmon di Architettura.
Main supporter: TBC Concept
Partners: Embassy of Italy in Georgia, IUAV University of Venice, Ilia State University, Tbilisi State Academy of Arts.
Winners of the 2025 “Eliso” Film Awards Announced in Gurjaani
On June 14, on the birthday of Georgian film icon Nato Vachnadze, the “Eliso” Film Awards ceremony was held at her House-Museum in Gurjaani.
By the decision of the jury, the 2025 winners were announced as follows:
Best Film:
Holy Electricity – Tato Kotetishvili
Jury’s Special Mention – Best Film of the Year:
Blue Blueberry – Elene Mikaberidze
Best Director:
Maka Gogaladze (As Long as I Remember Myself)
Best Actor:
Data Chachua (Panopticon)
Mzia Arabuli (At the Crossroads)
Best Cinematography:
Tato Kotetishvili (Holy Electricity)
Best Editing:
Maka Gogaladze (As Long as I Remember Myself)
Best Art Direction:
Ketevan Nadibaidze (Panopticon)
Additionally, by the decision of the Nato Vachnadze Foundation, the 2025 Nato Vachnadze Honorary Award was presented to writer Nino Haratischwili for her contribution to the development of Georgian literature and theater.
The existence of the “Eliso” awards once again underlines the importance of supporting the arts—especially Georgian cinema. Events like this not only strengthen the film industry but also inspire the next generation of creators.
Supporting arts and cinema remains one of TBC’s top priorities, as we believe that culture is a vital pillar of national development. That’s why we are committed to continuously creating spaces where artists can bring their visions to life and express their messages confidently and boldly.
