Georgian pension assets dip by ₾102 mln following Trump’s tariff decision

Georgia’s pension assets saw a drop of 102 million GEL (1.7%) following a global market downturn sparked by US President Donald Trump’s announcement on April 3 to impose tariffs worldwide.

According to the latest operational statistics from the Georgian Pension Agency, the country’s pension assets decreased from 6.506 billion GEL to 6.402 billion GEL between April 3 and April 8, marking the largest fluctuation in value this year.

The decline coincided with a sharp fall in global stock indices, including the US S&P 500 and major European and Asian markets. As part of its strategy, the Georgian Pension Fund had allocated a portion of its assets to the global stock exchange, which was directly impacted by the market slump.

The Pension Agency’s portfolio includes around 1.07 billion GEL, or 16.6%, in global stocks. However, the agency’s broader investment strategy also includes a significant portion of assets in more stable financial instruments, such as Georgian government treasury bonds and certificates of deposit issued by local banks.

While the global stock market experienced losses following Trump’s tariff decision, there was a brief recovery on April 8 when the US President announced a 90-day suspension of the tariffs. This led to an 8% surge in the S&P 500 index, which likely boosted the Georgian Pension Fund’s assets in the short term. Despite this, by April 10, stock indices began to decline once again.

The Georgian Pension Agency manages the savings of approximately 1.4 million citizens, with the average pension savings per participant standing at around 4,500 GEL. The agency’s investments, including 60.7% in local bank certificates and 17.1% in Georgian treasury bonds, are designed to balance risk while providing long-term growth for pension savers.