Geostat: foreign direct investments doubled in Georgia in 2021
The top three countries that invested the most in 2021 were: the United Kingdom - $596.6 million, the Netherlands - $125.9 million and the Czech Republic - $81.8 million.Photo: Nino Alavidze/Agenda.ge
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Foreign direct investments (FDI) in Georgia totalled $1.152 billion in 2021, which is two times higher compared to the adjusted data of 2020, the National Statistics Office of Georgia (Geostat) reported in its latest data.
Geostat said an increase in equity, reinvestment of earnings and debt instruments were the main reason for the growth in FDI, with the share of reinvestment in 2021 amounting to 66 percent of total FDI.
Image: Geostat
The top three sectors with the largest share of FDI in the third quarter of 2021 were as follows:
- Financial sector - $443.3 million
- Entertainment, recreation and other services - $230.5 million
- Energy sector - $157 million
The aforementioned three economic sectors in FDI equalled 72.1 percent in 2021.
The top three countries that invested the most in the third quarter of 2021 were:
- The United Kingdom - $596.6 million
- The Netherlands - $125.9 million
- The Czech Republic - $81.8 million
Georgian Economy Minister Levan Davitashvili called 2021 a “very successful” year earlier today and said the growth rate of foreign direct investment “clearly shows” the confidence of investors in the Georgian business environment, noting it was related to the country’s improved ratings.
We have seen that the development of the capital market is already in its infancy and the attracted funds in the direction of the capital market have increased significantly,” Davitashvili said.
In the fourth quarter of 2021, the FDI in Georgia amounted to $411.3 million, while in the third quarter of the reporting year it totalled $299 million, marking an increase of 1.4 percent compared to the same period of 2020.
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.
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”.
Foreign direct investments (FDI) in Georgia totalled 299 million USD in the third quarter of 2021, which is up 1.4% from the adjusted data for the same period last year, the latest data of the National Statistics Office of Georgia (Geostat) show.
Foreign direct investments (FDI) in Georgia amounted to $234.2 million in the second quarter of 2021, down 2.6% from the adjusted data of the same quarter of 2020, show the latest data of the National Statistics Office of Georgia (Geostat). The largest share of FDI was registered in the financial sector, reaching $82 million (35%), the energy sector was the second with $65.2 million (27.8%), followed by the manufacturing sector with $46.5 million (19.9%).
The role of the Pension Fund in the development of the economy, importance of long-term investment sources and legislative initiatives for the Fund were in the focus of a meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board on Tuesday.
The net asset value of the pension fund in Georgia equals 2.23 billion GEL ($724mln/€664mln), the Pension Agency of Georgia has said in its March 2022 report.
One of the largest investment banks in the world, JP Morgan Chase, has been selected by the Pension Agency of Georgia to launch its investing in international financial markets, the Agency announced on Tuesday.