Economist Akaki Tsomaia says the decline in foreign direct investment (FDI) indicates that Georgia’s investment environment is becoming less attractive. He said the drop in reinvestment is particularly concerning, as it suggests existing investors do not have strong expectations for future economic conditions.
Tsomaia noted that the financial sector is a key indicator because it accounts for a significant share of foreign investment in Georgia. According to him, declining reinvestment in the sector suggests Western investors are less optimistic about the country’s economic outlook.
Georgia’s FDI fell by 23.2% year-on-year to $468.8 million in the second quarter of 2026, with the decline mainly driven by lower reinvested earnings, according to Geostat.
In the first six months of 2026, FDI totaled $750.1 million, down 22% from the same period a year earlier. Tsomaia said the trend points to growing concerns over Georgia’s investment climate and future economic prospects.
