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Issue 74: Foreign Direct Investments - I Quarter, 2016

17-Jun-2016

 

Foreign Direct Investments - I Quarter, 2016
Issue  #74 / 17.06.2016

 

In the first quarter of 2016, according to the preliminary data:

  • The volume of Foreign Direct Investment (FDI) in Georgia increased by 103% compared to the first quarter of 2015 and amounted to US$376.4 mln.
  • The highest proportion of FDI was invested in Tbilisi (63%).
  • The biggest three investors in Georgia by country were Azerbaijan (36.4%), Turkey (15%) and United Kingdom (11.7%).
  • Looking at investment by sector, the most attractive sectors for investors were transport and communications (53.2%), financial services (15.3%) and energy (10.6%).

1              Source: GeoStat

 






Based on preliminary data, in the first quarter of 2016 compared to the first quarter of 2015, the volume of FDI in the country increased significantly - by 103.2% (US$191 mln) and amounted to US$376.4 mln.

In the first quarter of 2016, the top five investors in Georgia by country were as follows: Azerbaijan (36.4%; US$137 mln), Turkey (15%; US$57 mln), United Kingdom (11.7%; US$44 mln), South Korea (8.5%; US$32 mln) and Netherlands (5.7%; US$22 mln). This breakdown differs from the FDI results in the corresponding period of 2015, when the structure of the top five foreign investors included Russia (17%; US$23 mln) and Denmark (12%; US$21 mln), while United Kingdom and South Korea were not among them.

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                                                                                                                                                        Source: GeoStat

In the first quarter of 2016, compared to the corresponding period in the previous year, the volume of FDI increased significantly from the following countries: Azerbaijan (132%), Turkey (113%), United Kingdom (254%) and South Korea, while FDI decreased from Netherlands (-32%). Interestingly, in the first quarter of 2016 the volume of FDI from South Korea was the highest among investments from this country (In the first quarter of 2015 - only US$0.1 mln; In the first quarter of 2016 - US$32.1mln).

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                                                                                                                                                        Source: GeoStat

In the first quarter of 2016, the breakdown of FDI by economic sector was as follows: transport and communications (53.2%; US$200 mln), financial sector (15.3%; US$58 mln), energy (10.6%; US$40 mln), real estate (5.8%; US$22 mln), construction (5.1%; US$19 mln) and other sectors (10%; US$38 mln). This composition differs from the FDI structure in the corresponding period of 2015. In 2015, included in the top five sectors were mining (10%) and hotels and restaurants (9%), while the financial sector and real estate did not appear.


During the first quarter of 2016, compared to the corresponding period in 2015, the volume of FDI increased in the following sectors: transport and communications (37%), energy (92%), financial sector (14-times) and real estate (216%), while the volume of FDI declined in the construction sector (-22%).

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                                                                                                                                                     Source: GeoStat

Compared to the first quarter in 2015, FDI is concentrated more in Tbilisi. In the first quarter of 2016, 65% of total investments came to Tbilisi (in the first quarter of 2015 this figure was 47%). Both the share and volume of FDI increased into Tbilisi in this period. The volume of FDI into Tbilisi increased by 78%.


It should be noted that during the first quarter of 2016, the most popular regions, after Tbilisi, among foreign investors were: Adjara (18%), Samegrelo-Zemo Svaneti and Guria (15%) and Samtskhe-javakheti (4%).

Here, compared to the first quarter of the previous year, the volume of investments increased in Adjara (78%) and Samgrelo-Zemo Svaneti and Guria (168%), while the inflows of FDI in Kvemo Kartli declined (-99%).

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        Source: Ministry of Finance of Georgia                                                                                                                                           Forecasted *
                         National Statistics Office of Georgia
                         National Bank of Georgia                              

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