Page 27 - GEORptFeb22

Georgia’s FX reserves up in 2021
up from $3.4bn in the previous month.
In 2020, foregin exchange reserves increased by $404mn in 2020, reaching $3.9bn as of the end of December, despite the $873mn sold by the National Bank of Georgia (NBG) for local currency stabilisation during the year.
The central bank conducted a total of 26 currency interventions to mitigate fluctuations in the Georgian lari (GEL) exchange rate in 2020. The forex injections substituted for the lack of tourism revenue inflows amid the coronavirus crisis. The increase in reserves was made possible by the $1.5bn in foreign debt raised by Georgia during the crisis..
The GEL exchange rate depreciated sharply in 2020 during the first wave of the coronavirus pandemic.
5.2 FDI
Georgia - FDI 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 2Q21 3Q21
FDI ($ mn)
1,039.2 1,837 1,728.8 1,654 1,980.8 1,317.1 1,335.8 572 131.7 297.7 299
FDI (% of GDP)
5.93 10.84 11.89 11.27 11.88 7.5 7
Source: Geostat, CEIC
Georgia Q3 FDI up 1.4% y/y
Georgia FDI
Foreign direct investment in Georgia reached $299mn in Q3 2021, an increase of 1.4% y/y, according to new data released by Geostat.
The United Kingdom was the top contributor to FDI, investing $60.9mn in Q3 2021 (20.4% of the total). Netherlands was second with $59.8mn (20.0%), followed by Czech Republic with $36.0mn (12.0%). The largest share of FDI was registered in the financial sector, with $87.1mn (29.1% of the total). The energy sector was second with $69.3mn (23.2%), followed by the manufacturing sector with $54.8mn (18.3%). Also of note was FDI registering a positive figure in hotels and restaurants in Q3 for the first time in a year with $6.9mn, following catastrophic losses last year which totaled -$249mn.
In Q2 2021, FDI in Georgia totalled $234.2mn, down 2.6% y/y. Reductions in the amount of equity, the transferring of ownership from non-resident to resident units and the payment of debt by several companies were the main reasons for this decline.
Foreign direct investment to Georgia slightly recovered from the
27 GEORGIA Country Report February 2022 www.intellinews.com