Foreign direct investments in Georgia up 9.1% in Q2
The United Kingdom was the major foreign direct investor country for Georgia in the second quarter of this year. Photo: Nino Alavidze/Agenda.ge
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Foreign direct investments in Georgia totalled $351.8 million in the second quarter of 2022, marking a 9.1 percent increase compared to the adjusted data of the same period in 2021, the National Statistics Office of Georgia reported in its latest figures on Thursday.
Geostat said an increase in equity, reinvestment of earnings and debt instruments had been the main reason for the growth in FDI, with the share of reinvestment in Q2 2022 amounting to 68.3 percent of total FDI.
The top three sectors with the largest share of FDI in the second quarter of 2022 were as follows:
- Energy sector - 76.6 million
- Real Estate sector-75.6 million
- Financial sector- 47.6 million
Image: Geostat.
The aforementioned three economic sectors in FDI equalled 56.8 percent in the second quarter of 2022.
The top three countries that invested the most in the second quarter of 2022 were:
- The United Kingdom -$64.7 million
- The Netherlands - $44.8 million
- Japan - $41.8 million
Image: Geostat.
Prime Minister Irakli Garibashvili on Monday said Georgia’s average real gross domestic product increase of 10.3 percent between January and July was an “unprecedented economic growth worldwide” on the backdrop of Russia’s war in Ukraine, which he said had caused “serious economic challenges in Europe, and in the whole world”.
The Prime Minister said despite the challenges caused by the conflict, Georgia had managed to “have a double-digit economic growth, which, of course, is very welcome”, adding the country’s exports had increased by 40 percent, while remittances had grown by 46.8 percent, exceeding $300 million, in the reported period.
A digital transformation council will be established in Georgia, with the involvement of both the Government and private sector, in order to “fully transform” the economy and develop the field of information technology (IT), Levan Davitashvili, the Georgian Economy Minister, announced on Friday.
Macroeconomic parameters in Georgia are “very healthy and stable” and depreciation of the Georgian lari exchange rate is mainly caused by “emotional factors,” Georgian Economy Minister Levan Davitashvili said on Tuesday.
Georgian Prime Minister Irakli Garibashvili on Monday said Georgia’s average real Gross Domestic Product increase of 10.3 percent between January and July was an “unprecedented economic growth worldwide” on the backdrop of Russia’s war in Ukraine, which he said had caused “serious economic challenges in Europe, and in the whole world”.
Fitch Ratings, a global financial ratings firm, has affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) status with a BB rating, also calling the country’s financial developments “broadly stable”.
Georgian Prime Minister Irakli Garibashvili on Monday announced amendments to the country’s budget bill to reduce its foreign debt to 40 percent of the gross domestic product, and budget deficit to 3.2 percent of the GDP, crediting the “unprecedented, double-digit” economic growth for enabling the moves.
Georgia currently owes $22.3 billion in external debt and the amount is growing, the National Bank of Georgia has said in its latest update of related statistics.