Foreign direct investments (FDI) in Georgia totaled $1.152 billion in 2021, up 2-fold YoY, 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% of total FDI.
The top three sectors with the largest share of FDI in the third quarter of 2021 were financial sector – $443.3 million, entertainment, recreation and other services – $230.5 million and energy sector – $157 million.
The aforementioned three economic sectors in FDI equaled 72.1% 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 and the Czech Republic – $81.8 million.
Economy Minister Levan Davitashvili called 2021 a “very successful” year 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 it totaled $299 million, marking an increase of 1.4% compared to the same period of 2020. (Agenda/Business World Magazine)