Page 21 - GEORptDec17

5.2 FDI
Georgia - FDI 2010 2011 2012 2013 2014 2015 2016 H1 2017
FDI ($ mn)
814.5 1,117.2 911.6 941.9 1,758.4 1,564.5 1,565.9 751
FDI (% of GDP)
7.47 7.51 5.25 5.93 10.6 11.23 11.69 /
Source: bne IntelliNews, Geostat, CEIC
Georgia’s FDI slides 5.5% y/y in H1
China-led AIIB to finance $114mn road project in Georgia
Georgia’s incoming foreign direct investment (FDI) slid 5.5% y/y in the first half of 2017 to $751mn, down from $794.4mn a year ago, according to preliminary statistics office data released on September 12.
Poised to grow by 4% in 2017, the Georgian economy has attracted more FDI in recent years in comparison to neighbouring countries thanks to higher overall GDP growth, business-friendly policies and the development of sectors like gas transit, real estate, transport and tourism.
Second-quarter FDI was $346.6mn, retreating from $404.3mn in Q2 2016 and $404.4mn in Q1 2017.
Total FDI in Georgia last year stood at $1.57bn, almost exactly the same as was recorded in 2015. Neighbours Azerbaijan and Turkey ranked as the leading sources of FDI, with $558mn and $203.5mn invested, respectively, followed by the UK ($118.8mn), the Netherlands ($97.2mn) and Luxembourg ($88.3mn).
Annual FDI in the country peaked at $2bn in 2007, prior to the country's five-day war with Russia, and, although it came close to the same level in 2014, it has yet to fully recover.
The Asian Infrastructure Investment Bank (AIIB) has signed an agreement to finance a bypass road around the Georgian beach resort of Batumi to the tune of $114mn, agenda.ge reported on June 17.
This is the China-led multilateral lender's first project in Georgia and the South Caucasus.
21 GEORGIA Country Report December 2017 www.intellinews.com