2024 began with a decrease in direct foreign investments (FDI). In the first three months of the year, FDI decreased by 64%. A decrease was observed in all components, including reinvestment.
Davit Maisuradze, Executive Director at Deep Structural Reforms' Center (DSRC), compares such a dramatic decrease in investments to election years, the post-war period of 2008, and the pandemic.
According to him, the 64% decrease in investments in the first quarter was caused by negative expectations, which later translated into political instability.
"My expectations are still pessimistic because the Russian law has been adopted. We are also waiting for the elections, so we should not expect growth in terms of direct foreign investments.
I don't expect an increase in foreign direct investment even from the Post-Soviet space, because any business is interested in investing in a country where its investment is protected by the court, therefore we should not expect an increase in terms of foreign direct investment during the year," says Davit Maisuradze.
