Economy Minister: increase in FDI confirms effectiveness of our economic, anti-crisis policy
Turnava said that the positive dynamics are taking place against the background of the global pandemic and at a time when international experts predict a 40 per cent drop in investment globally. Photo: Ministry of Economy.
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Georgian Economy Minister Natia Turnava says that the increased rate of foreign direct investment in the second quarter of 2020 proves that despite the pandemic the Georgian economy is gradually recovering.
Foreign direct investments (FDI) in Georgia amounted to $237.8 million in the second quarter of 2020, which is a 0.5 per cent increase compared to the same period of 2019, says the National Statistics Office of Georgia (Geostat).
Turnava said that the positive dynamics are taking place against the background of the global pandemic and at a time when international experts predict a 40 per cent drop in investment globally.
The prime minister's advisor for economics Beka Liluashvili says that the increase in foreign direct investments indicates that investors trust the economic policy of Georgia.
In addition, while the economy declined by 7.7 per cent in June we saw that in July the economy shrank 5.5 per cent, meaning that the economy has already moved to a recovery phase after stabilisation. Other economic indicators, such as remittances, fiscal parameters, spending indicators, have improved and economic activity has recovered in the manufacturing, mining and manufacturing industries, which are real sectors of the economy and critical to employment", he said.
Liluashvili added that 'we expect the Georgian economy to recover fast and next year we will have quite good indicators of economic growth'.
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
Foreign direct investments (FDI) in Georgia amounted to $237.8 million in the second quarter of 2020, which is a 0.5 per cent increase compared to the same period of 2019, show the latest data of the National Statistics Office of Georgia (Geostat). The largest share of FDI was registered in the financial sector, reaching $78.1 million in Q2 2020, the energy sector was the second with $29.6 million, followed by the construction sector with $27.7 million.
How does the gov’t plan to support the construction sector?
The Prime Minister of Georgia Giorgi Gakharia has presented a fourth anti-crisis plan today worth 434 million GEL aimed at supporting the construction and development sector of Georgia. He said that the construction and development sector was one of the fastest growing sectors which employed 120,000 people in 2019.
Georgia will spend 3.5 billion (about $1.10b/€1.02b) on its coronavirus anti-crisis plan, Georgian Prime Minister Giorgi Gakharia announced earlier today. "For now, the country will spend GEL 3.5 billion on managing the crisis, of which 1.035 billion GEL will be directed at social support of citizens, 2.11 billion GEL will be directed at the economy and entrepreneurs, while 350 million GEL will be spent on the health care of each citizen", Gakharia said.
International investment location scouts from leading European and US companies KPMG, Conway, and GDP Global are visiting Georgia for the first time to discover the country's investment potential and state programmes oriented towards industrial development.
Foreign direct investments (FDI) increased by 35 per cent and amounted to $51.9 million in Georgia's Black Sea region of Adjara in the second quarter of 2020, show preliminary data from the press office of the government of the Adjara Autonomous Republic.
Foreign direct investments (FDI) in Georgia amounted to $302.6 million in the third quarter of 2020, down 23.6% from the adjusted data of the same quarter of 2019 and up 25.2% from the preliminary data of Q2 2020, show the latest data of the National Statistics Office of Georgia (Geostat).
Foreign direct investments (FDI) in Georgia amounted to $616.9 million in 2020, down 52.9% from 2019, show the latest data of the National Statistics Office of Georgia (Geostat). Transferring of ownership from non-resident to the resident units in several companies is considered to be the main reason for the decline of FDI which reduced the value of foreign direct investments by $340.5 million.