Geostat: foreign direct investments doubled in Georgia in 2021

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.

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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.