Foreign Direct Investment Inflows Essentially Decline in 2020
According to the 2020 early report, foreign direct investments in Georgia made up $616.9 million, down 52.9% as compared to the 2019 final indicators. Even in 2008-2009, FDI inflows were higher, in the post-war period. According to official indicators, in 2020 FDI inflows saw the 15 years’ bottom.
According to Geostat, the national statistics service of Georgia, FDI inflows declined after several companies were transmitted to ownership of Georgian residents. As a result, FDI inflows declined by USD 340.5 million.
According to GeoStat, reinvestments in total investments amounted to USD560 million (90%).
Great Britain ranks first in FDI contributions to Georgia because several major financial institutions of Georgia such as the Bank of Georgia and TBC Bank, and Georgia Capital are registered in Great Britain and their investments are considered as FDIs.
Total FDI inflows from Great Britain amounted to USD307 million.
Great Britain - $307.8 million;
Netherlands - $172.1 million;
Turkey - $108.1 million;
USA - $ 93.3 million;
Malta - $27.6 million;
Luxemburg - $26.5 million;
Russia - $25.5 million;
Germany - $23.7 million;
Denmark - $22.0 million;
Panama – minus $209.3 million;
Other countries - $19.5 million.
As for distinct sectors, the major contraction in FDI inflows was seen in tourism field. The 2019 inflows in this industry were $120 million, while the year of 2020 recorded an outflow of investments of $221 million. In energy sector, FDI inflows declined by 98% to $6 million. Investments rose by 94% in mining industry and by 47% in financial sector.
FDI inflows due to sectors:
Finance sector - $400 million, up 47% year on year;
Mining industry - $101 million, up 94% year on year;
Real estate - $72 million, up 729% year on year;
Processing industry - $68 million, down 41% year on year
Development - $62 million, up 76% year on year.
Communications - $48 million, down 33%
Transport - $13 million, down 77%
Healthcare and social assistance - $10 million, down 25%
Fishing, agriculture - $9 million, up 56%
Energy - $6 million, down 98%
Hotels and restaurants - $221 million, down 284%
Other sectors - $49 million, down 84%.