Page 23 - GEORptMay18

The EU is Georgia's largest trade partner, though the country's trade volume with EFTA countries is low. In addition to the EU and EFTA countries, Tbilisi also has free trade agreements with China, Turkey and the Commonwealth of Independent States, and it is currently negotiating a similar accord with India.
5.3 FDI
Georgia - FDI 2010 2011 2012 2013 2014 2015 2016 2017
FDI ($ mn)
845.1 1,130.3 1,022.9 1,020.6 1,817.9 1,652.5 1,602.9 1,861.9
FDI (% of GDP)
7.47 7.51 5.25 5.93 10.84 11.89 11.27 11.88
Source: Geostat, CEIC
FDI in Georgia recovers to pre-2008 level
Foreign direct investment (FDI) in Georgia increased by 16.2% y/y to $1.86bn in 2017, according to a report by national statistics agency Geostat published on March 12.
The FDI volume has contracted in recent years due to the 2008 Russian invasion of Georgia and, more recently, to the depressed economic backdrop in the region and in the countries that invest the most in Georgia - Azerbaijan and Turkey. However, last year's result represents a recovery in FDI to pre-2008 levels.
Despite a 13.6% y/y contraction in its investments made in Georgia to $482.1mn, Azerbaijan remains the leading foreign investor in the country, a fact that has boosted bilateral cooperation and support between the two countries in other areas.
Turkey ($279mn), the UK ($250mn), the Netherlands ($224.3mn) and the Czech Republic ($133.8mn) completed the top five of the largest investors in Georgia last year. It is noteworthy that investments made through the Netherlands are frequently funds redirected from other sources that simply register their fiscal presence in that country.
In terms of the sectors that attracted the most FDI, transport and communications remained in the lead with 28.3% of total investment, though the absolute investment in this sector dropped by 22.2% y/y. Georgia is part of a number of regional infrastructure schemes, such as the Azerbaijani Southern Gas Corridor, which will transport gas from the Caspian Sea to Italy via Georgia and Turkey. Transport was followed by finance ($304.3mn), construction ($294.6mn) and energy ($188.6mn).
23 GEORGIA Country Report May 2018 www.intellinews.com