National Statistics Office of Georgia, GEOSTAT, published a report of direct foreign investments in Georgia. According to the report, the foreign direct investments (FDI) in Georgia amounted to USD 1 267.7 million in 2019 (preliminary data), up 0.2 percent from the same period of the previous year.
Direct foreign investments in Georgia amount to USD 1 267.7 million
By Nika Gamtsemlidze
Wednesday, March 11
The shares of major foreign direct investor countries in FDI stand as follows: The United Kingdom (19.5 percent), Turkey (18.7 percent) and Ireland (10.5 percent).
The share of three major economic sectors in FDI reached 48.4 percent in 2019. The largest share of FDI was registered in the financial sector, totaling USD 261.8 million. The energy sectors were the second with USD 193.9 million, followed by the hotels and restaurants sector with USD 157.5 million.
Foreign direct investments (FDI) in Georgia amounted to USD 347.0 million in Q4 2019 (preliminary data), two times higher compared to the same period of the previous year.
The share of FDI by three major economic sectors reached 66.1 percent in Q4 2019. The largest share of FDI was registered in the financial sector, reaching USD 138.1 million in Q4 2019, the construction sector was the second with USD 49.6 million, followed by the real estate sector with USD 41.6 million.
Since March 2018 (according to the IMF recommendations), GEOSTAT has started compilation and dissemination position data for FDI in an integrated format, which allows surveyed economic units to provide GEOSTAT with the adjusted information on a regular basis. GEOSTAT uses this opportunity to update respectively statistical information in regard to ensure high quality of statistical data.
Foreign direct investment is an investment in the form of controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
Foreign direct investments are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies. Foreign direct investment frequently involves more than just a capital investment. It may include provisions of management or technology as well.
The key feature of foreign direct investment is that it establishes either effective control of or at least substantial influence over the decision-making of the foreign business.
National Statistics Office of Georgia, the legal entity of public law, carries out its activities independently. It is an institution established to produce the statistics and disseminate the statistical information according to the Georgian legislation. National Statistics Office of Georgia is established by the Law of Georgia, 11 December 2009, on Official Statistics.