Growth of Georgia’s Bank Loan Portfolio: Who Has Access to Capital and Why?

As of February 2025, the total value of loans issued by Georgian banks reached 64.3 billion GEL, serving as a financial fingerprint of the country’s economic sentiment, structure, and business needs. Within this substantial figure, the largest share — 23.7 billion GEL — is attributed to consumer loans, indicating that a significant portion of the population still relies on credit to maintain or improve their standard of living. Nearly equal in scale are corporate loans, totaling 22.5 billion GEL, underscoring how actively Georgian businesses utilize financial tools to grow, expand, or maintain stability. Loans to small and micro businesses, on the other hand, amount to 18 billion GEL, reflecting growing financial inclusivity but also highlighting structural challenges, as this category still lags behind larger businesses in terms of overall credit volume.

A sectoral analysis of business loans reveals notable trends. Leading the list is real estate development, with a loan portfolio of 4.05 billion GEL and a 50% annual growth — a strong signal that construction continues to be a key economic driver. Rising demand for residential and commercial spaces, accelerated urbanization, and support for infrastructure projects have incentivized developers to take out more loans.

In second place is the services sector, with 3.6 billion GEL in credit and 29% year-on-year growth. This points to the ongoing shift of Georgia’s economy toward a service-based model, one that is typically less capital-intensive and more agile. The services category includes professional services, IT, education, design, and logistics, indicating that the next wave of Georgian business may be centered around service innovation.

Real estate management, agriculture, and tourism follow in third, fourth, and fifth positions, respectively. Agriculture stands out with only 5% growth, which is telling given the sector’s strategic importance. The slow pace is likely due to systemic challenges such as low levels of land registration, limited market access, and inefficient subsidy mechanisms — all of which hinder demand for agricultural credit.

A surprising highlight comes from the fuel station and fuel import sectors, which recorded the highest annual loan growth at 86%. This could be linked to increased imports, price volatility, or expansion of distribution networks. Equally noteworthy is the 317% surge in interbank financial instruments, which reflects heightened internal activity within the financial system and may result from technological advances and the spread of innovative financial products.

Meanwhile, the tourism and hospitality sector grew by just 4%, signaling the waning of the post-pandemic recovery boom. Nonetheless, a loan portfolio exceeding 3 billion GEL affirms its continued importance to the economy.

A particularly positive surprise comes from telecommunications, a standout in the technology sector, which posted 43% annual growth. This shows that digital transformation is now a serious priority for lenders and borrowers alike.

In contrast, heavy industry remained nearly flat, with a portfolio of 915 million GEL, signaling stagnation. This reflects an environment marked by high risk, low investment, and competitiveness issues.

Taken as a whole, these trends reveal that Georgia’s banking sector remains a primary engine of economic activity, with credit policies tailored to both individual and business needs. However, certain sectors — notably agriculture, heavy industry, and public organizations — are being left behind. These lagging areas may require targeted interventions to encourage credit access and foster development.

Ultimately, the distribution of credit paints a clear picture of Georgia’s economic priorities: it shows where growth potential lies, where the economy is placing its bets, and where structural barriers remain. Through the lens of lending, we can trace Georgia’s evolving economic map — revealing who controls capital and who is using it to shape the country’s future.