Direct Foreign Investments in 2016 in Georgia: Preliminary Results Announced

In Georgia in 2016 foreign direct investment totaled over 1.6 billion USD according to preliminary results published by the National Statistics Office of Georgia (Geostat). This is 22 percent higher than the preliminary results from 2015 and 5 percent higher than the adjusted results for 2015.

Reinvestments also increased in 2016, amounting to 32 percent of total FDI.

$330 million in FDI were allocated in the fourth quarter of 2016, which is 23 percent higher y/y and 1 percent higher compared to the adjusted results of the fourth quarter of 2015.

“Increased investment flows over recent years are the result of the economic and structural reforms implemented by the Georgian government, which had a positive impact on investors,” said Nino Javakhadze, Deputy Minister of Economy and Sustainable Development, highlighting that the considerable progress in democratic reforms in Georgia has helped to improve the business environment in the country and the development of various economic sectors.

"The ongoing economic and taxation system reforms, support to small and medium businesses, visa liberalization, and the free trade agreement signing are all factors increasing Georgia’s investment potential,” Javakhadze said.

Georgia has also expanded its economic freedom and improved business indicators.

The top sectors for FDI in Georgia for 2016 are transport and communications, at $645 million, the energy sector at $203 million, and the construction sector at $163 million. The top three countries with FDI in Georgia are Azerbaijan, with $578 million, followed by Turkey with $272 million and the UK with $121 million. The Netherlands and Czech Republic are in fourth and fifth place with $95 million and $93 million foreign direct investments in Georgia, respectively.

Nino Gugunishvili