Real estate, manufacturing increase boosts Georgia’s FDI

Significant increases in investments in Georgia’s real estate, manufacturing and transports and communications sectors in the first quarter (Q1) of 2014 contributed to boosting the country’s foreign direct investments (FDI).

Georgia’s FDI grew 15 percent ($33.7 million) in Q1, stated Policy and Management Consulting Group’s (PMCG) GDP economic outlook and indicators report.

Based on data from state statistics office Geostat, real estate was 133 percent ($12.5 million) higher than the same period of 2013. Using the same comparison, Georgia’s manufacturing sector jumped 4.1 percent ($34.7 million) and transports and communications improved 3.7 percent ($32 million).

In particular, the data showed Georgia’s financial sector attracted most FDIs. This was worth 34 percent, or $88.7 million, in the first three months of this year. The next industry to attract the most investments was the manufacturing sector (18 percent or $46 million), which was followed by the transport and communications industry (17 percent or $43.9 million); mining (6 percent or $15 million) then real estate (5 percent or $12. 6 million).

In the first quarter of 2014, the Netherlands invested slightly less than $73 million in Georgia, while $46.7 million came from Azerbaijan and about $35 million came from the United Kingdom. In addition, Turkey invested $29.9 million in Georgia and Russia spent $19.7 million here.

* All currencies are in USD.