Page 27 - GEORptAug19

biggest share of FDI last year.
FDI in the mining industry in 2018 also increased at a fast pace, by 29% compared to 2017.
According to Maia Zavrashvili, head of the National Agency of the Ministry of Economy, as quoted by InterPressnews, investment growth will remain strong in 2019.
"The dynamics of direct foreign investment in the mining sector are due to the current and implemented reforms in the fossil sector—increasing access to geological information, optimising administrative business processes, and the reduction of the initial auction price for catalysing the research of mineral resources," Zavrashvili said.
FDI in Georgia by sector [‘000 $]
2013
2014
2015
2016
2017
2018
y/y
vs. 5y avg
Total, o/w
1,020.5
1,817.7
1,665.6
1,565.8
1,894.5
1,232.4
-35%
-23%
Equity
534.3
1,151.9
1,281.5
1,798.2
1,187.9
699.9
-41%
-41%
Reinvested earnings
276.5
322.9
157.7
334.1
657.5
558.8
-15%
60%
Debt instruments
209.8
342.9
226.3
-566.5
49.1
-26.2
-153%
-150%
Source: NSI of Georgia, bne Intellinews
6.0 Public Sector 6.1 Budget
Georgian parliament passes 2018 budget law
Georgia’s 2018 budget stipulates an 8.5% increase in spending to GEL12bn (€4bn) compared to the 2017 budget. Meanwhile, revenues will amount to GEL10.5bn. Some GEL9.5bn of the revenues will arrive in the form of taxes, while the rest will be covered from grants and loans from donors.
Large budget deficits have been an issue for the small country in the South Caucasus for years, particularly because the government has used loans to finance them. Contributing to the 2018 budget deficit is an expected shortfall in
27 GEORGIA Country Report August 2019 www.intellinews.com