FDI Inflows to Georgia Declines by 6.3%
Inflow of foreign direct investments to Georgia declined by 6.3% and constituted 281.1 million USD in the first quarter of 2019, compared to the same period of 2018.
According to Geostat, the national statistics service of Georgia, there are two reasons behind the FDI inflow contraction: the main gas pipeline construction works were finished and several companies moved to ownership of Georgian residents.
In the reporting period Ireland emerged as Georgia’s major investment contributor with 133 million USD; the UK ranks second with 42.4 million USD and the USA is third with 22.5 million USD.
Major investment inflows were recorded in the fields of public utilities, personal and social services – 139.8 million USD. Essential downturn in FDI inflows was recorded in the finance sector, transport and development sectors. Namely, the finance sector recorded 42.7 million USD, down 33.6 million USD year on year, the transport sector - 28.6 million USD, down 87.4 million USD year on year, development sector – 8.4 million USD, down 46.1 million USD year on year.
At the same time, FDI inflows rose in the hotels and restaurants sector to 25.4 million USD, up18.3 million USD year on year. FDI inflows also increased to 21 million USD in the processing industry, up 8 million USD.