Page 23 - GEORptMar19

5.2 FDI
Georgia - FDI 2011 2012 2013 2014 2015 2016 2017 2018 2018 2018 Q1 Q2 Q3
FDI ($ mn)
1,130.3 1,022.9 1,020.6 1,817.9 1,652.5 1,565.8 1,894.5 287.0 389.1 322.6
FDI (% of GDP)
7.51 5.25 5.93 10.84 11.89 11.27 11.88 7.5
Source: Geostat, CEIC
European investors push up Georgia’s FDI
The value of foreign direct investment in Georgia across the rolling four quarters ending June increased by 19.4% y/y to $1.82bn and accounted for an impressive ratio of approximately 12.2% of period's GDP, according to data released b y the national statistics institute on September 10.
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.
23 GEORGIA Country Report March 2019 www.intellinews.com