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Among major new FDI projects, Turnava pointed out the Namakhvani hydropower project, the construction of which will begin by the end of the year involving investments worth $1bn, as well as the recently opened electric car manufacturing factory in Kutaisi.
Projects in the energy sector accounted for one-third of the quarter’s FDI, namely $63.7mn. Manufacturing was the second most important sector with $38.4mn and investments in hotels and restaurants were significant as well, at $28.1mn.
As regards the origins of FDI, the largest volume came from the Netherlands ( 31.1%), followed by Turkey (19.2%) and the US (14.7% ).
6.0 Public Sector 6.1 Budget
Georgian sketches 2020 budget envisaging 2.7% of GDP deficit
Georgia’s government has sketched its 2020 budget planning based on assumptions of 5% GDP growth next year and the targeting of a deficit of 2.7%-of-GDP in line with this year’s target, Business Media reported, citing finance minister Ivane Machavariani.
The public debt to GDP ratio would under the given scenario reach 45%. Budget expenditures are planned at GEL16bn in 2020. Current expenditure would be GEL11bn , infrastructure expenditure would be GEL3.7bn and debt repayment costs would be GEL1bn, according to the broad distribution of expenditures.
GDP is expected to reach GEL48.5bn, or $16.3bn, on an estimated average exchange rate of GEL2.98 to the USD.
The figures will be adjusted in line with the latest exchange rate projections at
31 GEORGIA Country Report December 2019 www.intellinews.com
