Georgia's FDI Volume Drops by 55.2% in Q3 2024 - Geostat

Preliminary data from "Geostat" reveals a significant decline in foreign direct investment (FDI) in Georgia for the third quarter of 2024. The FDI volume amounted to $197.7 million, marking a 55.2% decrease compared to the revised figures from the same period in 2023.

This decline is attributed to a reduction in equity capital and reinvestment figures, coupled with a decrease in liabilities to investors.

In Q3 2024, equity capital accounted for $131.2 million, representing 66.4% of total FDI. Reinvestment, however, fell by 13.6% year-over-year, amounting to $358.4 million.

Among investor countries, the Netherlands led with $60.2 million, making up 30.4% of total FDI. Malta followed with $58.3 million (29.5%), and the combined third place was shared by other investors, contributing $55.0 million (27.8%). Together, these three investor groups accounted for 87.7% of Georgia's total FDI.

Sector-wise, the manufacturing sector attracted the highest investment, totaling $63.6 million and comprising 32.2% of total FDI. The energy sector ranked second with $43.0 million (21.8%), followed by the trade sector, which garnered $32.1 million (16.2%). The combined share of these top three sectors represented 70.2% of the total FDI volume.

These figures underscore the challenges Georgia faces in attracting foreign investment, reflecting global economic trends and potential shifts in investor confidence.