Overview of Georgia’s Credit Market as of March 2025: A New Growth Phase and Sectoral Shifts

The first quarter of 2025 marked another important milestone for Georgia’s financial sector, driven by a sharp increase in the total loan portfolio and significant changes in lending structure. According to data released by the National Bank of Georgia (NBG), by the end of March the total loan portfolio of Georgian banks reached 63 billion GEL—representing a 16.6% year-on-year increase. This figure clearly illustrates the economy’s momentum and growing interest across consumer, corporate, and small business segments, all contributing to the expansion of the country’s financial market.

A structural breakdown of the loan portfolio shows that the largest portion—23.7 billion GEL—is composed of consumer loans. This dominance is driven by rising demand for personal financing, aspirations for improved living standards, and increasingly simplified banking products. The corporate loan portfolio stands at 22.5 billion GEL, signaling steady business development and investment growth in Georgia. Loans issued to small businesses amount to 10 billion GEL, and loans to micro businesses total 8 billion GEL, highlighting a nationwide rise in entrepreneurial activity.

Corporate lending reveals an interesting picture. The leading sector is real estate development, with a loan portfolio exceeding 4.1 billion GEL and a 42% year-on-year increase. This demonstrates that the construction and real estate markets continue to be key economic drivers, especially linked to large-scale projects underway in Tbilisi and other major cities.

The service sector ranks second, with a loan portfolio of 3.66 billion GEL and annual growth of 26%. This growth reflects the rising demand for services and the economy’s structural shift toward a service-based model. Real estate management follows with 3.4 billion GEL, and agriculture ranks fourth with 3.3 billion GEL. Although agriculture shows only 4% loan growth, it represents a step toward economic diversification.

Tourism, a strategically important sector for Georgia, comes in fifth with a 3 billion GEL credit portfolio. However, its annual growth is just 1%, possibly indicating a slowdown in the sector’s growth rate or reflecting structural changes within the industry.

Of particular note is the 77% annual growth in loans to gas stations and fuel importers—making it one of the most dynamic segments this year. Similarly, the category of interbank financial instruments saw a 139% increase, indicating growing use of banking instruments within the market.

Positive dynamics are also seen in sectors such as construction materials manufacturing and trade, telecommunications, consumer goods production, pharmaceuticals, and healthcare—each reporting growth rates between 18% and 41%. This points to the simultaneous strengthening of multiple sectors across the economy.

However, not all sectors performed equally well. Heavy industry (-4%) and exporters (-5%) experienced annual declines, while loans to state organizations saw a sharp 41% drop. These trends suggest a shift in economic priorities, a growing emphasis on the private sector, and challenges facing the export sector that require strategic attention.

In summary, the first quarter of 2025 can be considered a successful period for Georgia’s credit market. The concurrent growth in consumer and business lending, diverse sectoral dynamics, and a focus on infrastructure projects could provide a solid foundation for sustained economic expansion. Nonetheless, it is crucial to monitor the sectors losing momentum to maintain overall economic balance. Georgia’s financial market is undergoing transformation, and if managed carefully, it could pave the way for a stronger economic wave in the coming years.