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Posted: 1 week ago

TBC Capital Forecast – Georgia’s FDI will Shrink by $500 million in 2020

Foreign direct investments in 2020 will expectedly shrink by $500 million compared to 2019 and the figure will amount to $770 million, TBC Capital company reports.

On the whole, FDI inflows to the country will decline by about $1.4 billion and the country will attract $3.1 billion foreign assistance component to balance the mentioned slowdown.
 
Currency inflow losses – TBC Capital
 
“In 2020, expected net losses of FDI inflows will be about 1.4 billion USD, including 900 million USD current account and estimated losses of 500 million USD (slowdown of about 300 million USD currency inflows and a downturn in reinvestments).
 
The announced amount totals about 3.1 billion USD, of which 1.6 billion USD will be attracted by the Authorities and 1.5 billion USD by the private sector.
· Purpose of government money:
 
· Social support programs of 1.035 billion GEL
· Economic and entrepreneurship program of 2.110 billion GEL
· Healthcare system expenditures – 350 million GEL
 
1 billion USD will be spent on refinancing state and private debts. Imports contraction is driven by several factors, including: Slowdown in inflows; Reduction in domestic demand amid the state of emergency and deteriorated business and consumer moods; According to the TBC Capital forecast, Georgia’s economic slowdown in 2020 will be 4.5%-5.5%.