The foreign direct investments (FDI) in Georgia amounted to USD 616.9 million in 2020 (preliminary data), down 52.9 percent from the same period of the previous year.
Archil Gachechiladze, CEO of the Bank of Georgia, told BM.GE that the decline in foreign direct investments was not surprising amid the economic crisis in 2020. He said the government should make the most of this period to attract investment in all sectors.
"2020 was a difficult year, probably the most difficult in recent times. So the decline in investments was not very surprising, but we have to use this period to do everything to attract investments in all sectors. Investments are not only an inflow of money, but also new jobs, knowledge transfers, and this is the long-term success of Georgia," said Archil Gachechiladze, CEO of the Bank of Georgia.
Breakdown of FDI by Economic sectors:
Hotels and restaurants - $ 221 million down, $ 120 million was invested in 2019 (decrease of $ 341 million)
Energy - $ 6 million, decrease of 98% y-o-y
Transport - $ 13 million, decrease of 77% y-o-y
Manufacturing - $ 68 million, decrease of 41% y-o-y
Communications - $ 48 million, decrease of 33% y-o-y
Healthcare and Social Assistance - $ 10 million, decrease of 25% y-o-y.
The largest share of FDI was registered in the financial sector, totaling USD 400.3 million. The mining sector was the second with USD 101.5 million, followed by the real estate sector with USD 71.8 million.
Financial sector - 400 million USD, increase of 47% y-o-y
Mining industry - 101 million USD, increase of 94% y-o-y
Real Estate - 72 million USD, increase of 729% y-o-y
Construction - 62 million USD, increase of 76% y-o-y
Agriculture, fishing - 9 million USD, increase of 56% y-o-y.
