Page 28 - GEORptNov18

The growth rate remained close to last year's 21% y/y advance, to $1.89bn or 12.5% of GDP.
European investors poured into Georgia during the four-quarter period, delivering 2.4 times more capital than one year earlier, and they accounted for half of the period’s total FDI in the country ($900mn). Beside activity in the investments hubs where multinationals from the Netherlands and the UK base their headquarters, investors from Czechia ($206mn, 234% up y/y) were particularly active. Chinese investors also doubled their contribution, taking it to $79mn.
On a broader perspective, FDI in the rolling four-quarter period remained above 10% of GDP, where it increased to starting with Q3, 2014. In value terms, the FDI returned to the pre-crisis period (before 2008) but as a percentage of GDP it still lags behind the peak value of 19% seen in Q2, 2008.
By economic sector, the financial sector ($400mn in the four-quarter period) as well as the sectors of transport ($365mn) and energy ($315mn) concentrated half of the FDI. The investments in the country’s financial sector soared 4.2 times y/y in the period, while those in the energy sector increased by 3.5times.
FDI in Georgia by sector [‘000 $]
Q2, 2018
2017 y/y
Q1 y/y
Q2 y/y
4Q ending June
y/y
Total
389,198
21.0%
-27.1%
9.4%
1,821,249
19.4%
of which:
Agriculture, fishing
6,920
48.3%
-230.9%
72.6%
14,082
22.7%
Mining
17,616
4.1%
85.0%
25.3%
65,561
38.8%
Manufacturing
22,233
-21.5%
211.8%
21.7%
130,163
0.2%
Energy sector
108,798
54.6%
-23.4%
651.5%
315,729
246.8%
Construction
29,144
67.8%
27.1%
-56.3%
260,283
11.2%
Hotels and restaurants
7,622
35.9%
233.4%
-69.6%
75,441
-5.0%
Transports and communications
77,028
-23.0%
-108.0%
-33.3%
313,755
-40.3%
of which:
-
Transports
64,869
-18.0%
-46.6%
-45.1%
365,150
-29.0%
28 GEORGIA Country Report November 2018 www.intellinews.com