Foreign Direct Investment of Georgia Declines by 24% in 2023

Georgia experienced a significant downturn in foreign direct investment (FDI) in 2023, with a 24% reduction compared to the previous year. According to reports, the country received $1.6 billion in FDI during the year.

The investment landscape saw fluctuations across various sectors. While company-authorized capital witnessed a notable increase of $476 million, reaching a total of $1.16 billion, reinvestments declined by $99 million to $1.27 billion. Additionally, debt, including trade obligations and loans, decreased by $857 million.

Among industries, the financial and insurance sectors emerged as the most attractive to investors, garnering $630.1 million or 39% of the total investment. Following closely, the manufacturing industry received $291.7 million, while the transportation sector secured $138.2 million in investments.

Despite the overall decline, certain countries demonstrated a surge in investment into Georgia. Notably, the Netherlands saw an 84% increase, reaching $361 million, while Turkey experienced a remarkable 206% rise, totaling $169 million in investments. Other countries, including Malta and Azerbaijan, also showed significant growth in investment volumes.

However, several major investor countries witnessed a decline in their investment contributions. The United Kingdom, the United States, and Russia reported reductions of 10%, 13%, and 19%, respectively. Nevertheless, with efforts to attract foreign investment and foster economic growth, Georgia remains poised to navigate through these challenges and capitalise on emerging opportunities in the global investment landscape.