Page 27 - GEORptNov20

USD3,424.63mn in June.
5.2​ FDI
Georgia - FDI 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 Q1 Q2
FDI ($ mn)
1,022.9 1,039.2 1,837.0 1,728.8 1,652.6 1,978.3 1,306.3 1,310.8 171.8 237.8
FDI (% of GDP)
5.25 5.93 10.84 11.89 11.27 11.88 7.5 7
Source: Geostat, CEIC
FDI inflow to Georgia stabilises in Q2 after weak Q1
Second-quarter foreign direct investment in Georgia edged up by 0.5% y/y to $237.8mn, according to preliminary official data.
The FDI volume in the first half of the year decreased by $140.7mn y/y to $409.6mn, marking a 26% decline, the figures also showed.
Most FDI came from the UK (24.8%), followed by the Netherlands (22.4%) and Turkey (13.3%).
The share of FDI in the three major economic sectors reached 57.0% in Q2. The largest share was registered in the financial sector, reaching $78.1mn. Second was energy with $29.6mn and third was construction with $27.7mn. Notably, FDI in the financial sector soared by 628% y/y to $178mn in H1. Foreign investments in real estate also increased markedly, by 146% y/y to $42mn.
The highest ever foreign investment level in Georgia was recorded in 2017 at $1.96bn. Georgia's largest investor that year was Azerbaijan ($462mn), with the investment largely related to the construction of the second phase of a pipeline running from the Shah Deniz gas fields.
In 2018, foreign direct investment in Georgia decreased by 35.5% y/y to $1.26bn, while in 2019 it edged up by 0.2%. In 2020, due to the coronavirus (COVID-19) crisis, the investment volume has been further reduced.
27​ GEORGIA Country Report ​November 2020 ​ ​www.intellinews.com