Giorgi Khishtovani, director of the PMC research center, says that the high rate of reinvestment in recent years is directly related to the lack of new investors in Georgia.
As of him, the main share of reinvestment comes from the financial sector, while there is a lack of FDI in other sectors.
According to Giorgi Khishtovani, there are talks on specific investments, but the statements remain as announcements.
"The share of reinvestment is increasing y-o-y, which means that, new, important investments are not made in Georgia. The first sector in terms of investments is the financial sector, we know that part of the reinvestment accounts for the financial sector's profit. Accordingly, we don't try to find new investors, as a rule, every year, one large investment is made, and the size of this large important investment determines the trend of growth or decline, which is not enough for an open economy," says Giorgi Khishtovani, director of the PMC research center.
In 2023, direct foreign investments in Georgia decreased by 24%. Last year, almost USD 1 billion 600 million were invested in the country.
