Skip to main content

In 2023, according to data from the National Statistics Office of Georgia, Foreign Direct Investment (FDI) amounted to $1.59bn. This figure marks a decrease of 24% compared to the previous year, during which the country attracted slightly over $2bn in total inflows.

Specifically, equity capital reached $1.17bn in 2023, showing a notable increase of 68.3% from the previous year’s $696.8m. Additionally, earnings reinvestment amounted to $1.28bn, while debt, including trade credits and loans, stood at negative $857.5m.

The United Kingdom emerged as the leading investor in Georgia, contributing 24.6% of FDI volumes, followed by the Netherlands at 22.6% and Turkey at 10.6%.

According to the report by the National Statistics Office of Georgia, the three major economic sectors collectively accounted for 66.5% of FDI in 2023. The financial and insurance activities sector attracted the largest share with $630.1m (39.5%), followed by manufacturing with $291.7m (18.3%), and the transport sector with $138.2m (8.7%).

Georgia sustained an economic growth rate exceeding 5% from 2005 to 2019, with fiscal and monetary policies emphasizing low deficit, low inflation, and a floating exchange rate.

However, growth prospects were dampened by Russia’s invasion of Ukraine, with investors expressing concerns about the efficacy of Georgian judicial institutions in handling commercial cases promptly and fairly.

Nevertheless, Georgia has enacted significant legal reforms to enhance its attractiveness to FDI. Despite the decline in FDI levels in 2023, the $1.59bn recorded last year exceeded pre-Covid levels, surpassing both 2018 and 2019 figures of $1.35bn each.

Related Article here

More news here