Irakli Kovzanadze on FDI Increase

“Record high increase of foreign direct investments (FDI) has been conditioned by economic reforms implemented in the country” said MP Irakli Kovzanadze, Fiscal Committee Chair of the Parliament of Georgia while commenting on the increased FDI indicators. (see FDI incrwase article here) 

The MP has mentioned once more the fact that investments from EU have been increased by almost 2.5 times.

“FDI inflows in Georgia throughout 2017 have totaled almost 1.9 BLN USD, which is a historic maximum since regaining independence. It is worth noting that boosted FDI has not only quantitative, but also qualitative aspects associated with it: in the conditions of 1.6-2 per cent increase, FDI to the real economy has been significantly boosted – by almost 1.4 times, while the share of re-investments in overall volume of investments – has been doubled; it is also important to note that FDI from EU member states have been increased by nearly 2.5 times.”

“Referred success has been achieved through the targeted, appropriate, goal-driven economic policies made by the Government and Parliament of Georgia: distributed profit tax – a so called Estonian Model of Corporate Income Tax (CIP) - has been enforced in just one year and led to the significant increase of credibility towards the existing taxation system among businesses and attractiveness of the country at large as a preferred FDI destination.  Banking supervision has been strengthened; deposit insurance has been introduced, thus enabling the improved mobilization and application of financial resources among general public; IMF Program has been put back on track. I believe that positive role has also been played in attracting the FDI by retaining the current wording in the Constitution and Economic Liberty Act of Georgia” Kovzanadze finished by saying. 

The GT Team