Foreign direct investments up by 9.4 percent in Q2

Foreign direct investments (FDI) in Georgia amounted to USD 389.2 million in Q2 2018 as shown by preliminary data published by the Geostat.

Q2 FDI is up by 9.4 percent  compared to the adjusted data for Q2 2017.

The largest foreign direct investor in the country is Azerbaijan with a 20.7 percent share in total investments while the Czech Republic comes second (20.0 per cent) and the Netherlands in third (16.8 per cent).

The largest share of FDI was allocated to the energy sector, reaching 108.8 USD million in Q2 2018. The transports and communications sector came next with 77 million USD, followed by the financial sector with 64.1 million USD. The share of FDI by the three major economic sectors reached 64.2 percent of total FDI in Q2 2018.

As the Deputy Minister of Economy Ekaterine Mikabadze noted, the reinvestment rate has increased by 34.4 percent Q/Q .

“The upward trend in reinvestment once again proves that investors trust the Georgian economy more which is triggered by the successful economic reforms carried out in the country recently. Among them is the corporate tax reform which allows investors to allocate their profits into new investments instead of taxes and expand their business activity,” Mikabadze added.

Geostat has updated statistical data for 2017 (published data increased by 0.3 percent) and the 1st quarter of 2018 (data decreased by 0.1 percent) on the basis of adjusted data provided by enterprises.