Georgia Bolsters Anti-Corruption Drive Amid EU Report Anticipation and Economic Growth
October 31, 2025
The political and legal landscape in Georgia saw significant developments today, with heightened focus on anti-corruption efforts. The Prosecutor's Office initiated criminal proceedings against Vladimer Khundadze, former Deputy Head of the Revenue Service, for alleged abuse of power in connection with an illegal alcohol production scheme. This follows the arrest of Koba Gabunia, former Deputy Minister of Regional Development and Infrastructure, related to unfulfilled kindergarten construction obligations. These actions are taking place amidst a robust public discourse on corruption, with businessmen like Temur Chkonia questioning the effectiveness of current anti-corruption measures, while parliamentary figures like Gia Volski affirm the government's commitment to holding wrongdoers accountable.
Georgia's European integration remains a central theme, as the European Union's expansion report on the country is set to be published on November 4. The internal political climate is marked by continued tensions, highlighted by Euronest describing the ruling party as a "regime" and urging the release of political prisoners. Statements from Irakli Kobakhidze, the Chairman of the ruling party, indicated intentions to possibly ban certain political entities, including "Lelo" and "Gakharia - For Georgia," while also criticizing "European bureaucracy" and dismissing claims of widespread corruption within the government. Meanwhile, protests continue, leading to arrests of activists, drawing concern from international organizations like Amnesty International regarding freedom of expression.
Economically, Georgia demonstrated strong performance, with the national statistics service reporting a 7.7% economic growth for the first nine months of 2025, including a 6.4% increase in September. The tourism sector saw a notable 12% rise in Russian visitors, who constituted 23% of all international visitors between January and September. Infrastructure development is also a priority, with a scoping conclusion issued for the Natakhtari-Zhinvali road, a 27-kilometer project, and plans announced for the fundamental rehabilitation of major avenues and streets in Tbilisi. On the business front, Bank of Georgia received international recognition as the best AI bank in Central and Eastern Europe. However, demographic challenges were noted in Poti, including stable population decline and low birth rates.
In international news with potential regional implications, American media reported a US decision to strike military facilities in Venezuela. The ongoing conflict in Ukraine was also featured, with President Volodymyr Zelensky stating that 170,000 Russian troops have been amassed in the Donbas region, describing the situation in Pokrovsk as difficult. In a gesture of support, Georgia announced it would send generators worth 1.5 million GEL to Ukraine. Locally, the Tbilisi City Council approved the new city government, and news surfaced regarding property tax deadlines approaching, affecting hundreds of thousands of citizens. The official exchange rate for the US dollar was set at 2.7127 Georgian Lari.