Economy
Posted: 2 years ago

Share of Reinvestments Increase Dramatically in Georgia

In 2021, the volume of foreign investments (FDI) in Georgia was 1.241 billion dollars. According to Geostat data, the adjusted indicators of FDI are 7.7% higher than the preliminary data, and they are 2.1 times higher than the pandemic 2020 data.

As Geostat report suggests, the increase in the adjusted indicators was caused by the adjustment of the reinvestment indicator and loan volume by several enterprises.

It should be noted that the share of reinvestment has increased dramatically. The rate of reinvestment in total investments is 769.9 million dollars or 62% of the total portfolio. If we do not count the pandemic year, this is the highest rate of reinvestment. For example, the share of reinvestment in 2025 was only 9.1%, and in 2016, it was 18.8%. These indicators, on the one hand, indicate the low entry of new investors into the country, and on the other hand, the incomes received by existing investors are left in the country.

Great Britain leads the top ten investor countries with 48.6% of total investments. The Netherlands (11.1%) and Turkey (8.1%) are in the top three.

Investor countries and investments:

• United Kingdom - 603.6 million dollars
• Netherlands - 138.3 million dollars
• Turkey - 100 million dollars
• Czech Republic - 80.8 million dollars
• Russia - 75.5 million dollars
• Germany - 36.2 million dollars
• Luxembourg - 34.9 million dollars
• Seychelles - 29.9 million dollars
• Emirates - 28.3 million dollars
• Other countries - 114.3 million dollars

As for the sectors, the most attractive is still the financial sector, where 37.5% of the total investments are invested.

FDI by sectors of the economy in 2021:

• Financial sector - 465.3 million dollars
• Energy - 185.9 million dollars
• Industry - 133.3 million dollars
• Real estate - 110.3 million dollars
• Agriculture - 1.9 million dollars
• Health care - 26.8 million dollars.