Page 33 - GEORptSep21

5.2 FDI
Georgia - FDI 2013 2014 2015 2016 2017 2018 2019 2020 2021*
FDI ($ mn)
1,039.2 1,837.0 1,728.8 1,652.6 1,978.3 1,306.3 1,310.8 57.0 132.2
FDI (% of GDP)
5.93 10.84 11.89 11.27 11.88 7.5 7
Source: Geostat, CEIC
2020 FDI in Georgia down 57% at $572mn
Foreign direct investment (FDI) in Georgia stood at $572mn in 2020, down 57.2% from 2019, according to final data released by the Georgian National Statistics Office (Geostat) on August 16.
The figure is down 7.3% from the preliminary figure of $616.8mn released in March. Geostat said an adjustment of reinvestments by several enterprises was the reason behind the change.
It added that the key driver of the year-on-year decline was the transfer of several companies from non-resident to resident status, which reduced the value of FDI by $283mn.
According to Geostat, the share of reinvestments in 2020 amounted to 87.5%, or $500.5mn.
In 2020, the largest amount of FDI came from the United Kingdom at $303mn, up from $236.9mn in 2019, followed by the Netherlands with $200.7mn (up from $88.1mn in 2019), the US with $98.4mn (down from $115.6mn a year before), and Turkey with $79mn (down from $174.2mn in 2019).
The rest of the investors were Malta – $45.9mn (up from $1.2mn in 2019), Russia – $39.2mn (down from $55.2mn in 2019), Germany – $36.5mn (up from $23.7mn in the previous year), Denmark – $28.9mn (up from $2.8mn in 2019) and Luxembourg $21.6mn (down from $68.8 mn the year before). FDI from Panama was negative, at $210.1mn.
The financial sector received the largest share of investments with $404.4mn (up from $272.1mn in 2019), followed by mining with $98.8mn (up from $52.4mn a year before) and real estate with $90.3mn (a significant rise from $8.6mn in 2019).
The other sectors receiving FDI were transport and communications – $62.7mn; manufacturing – $35.5mn; construction – $33.3mn; health and social work – $10.6mn; remaining sectors – $85.9mn. Investments in hotels and restaurants posted a negative $249.5mn.
2021 first quarter FDI stood at $132mn, according to adjusted data.
33 GEORGIA Country Report September 2021 www.intellinews.com