Non-tradeable sector shrinks in Georgia
Baku, Azerbaijan, September 11
By Tamilla Mammadova – Trend:
Breakdown of Foreign Direct Investment (FDI) by tradeable/non-tradeable sectors in Georgia indicate that the non-tradeable sector was the main driver of the reduction (construction, financial sector), Trend reports with reference to TBC Research.
At the same time, FDIs in tradeable sector remained more stable and comparable to the levels seen before the BP’s South Caucasus Pipeline Extension project started in 2014.
Taking into account base effects, still significant drop is expected in third quarter 2019 before recovering in the last quarter of the year, the report said.
Overall, FDI inflows at around 5-6 percent of GDP, excluding large scale projects, are broadly comparable to the levels in 2010-13, being still strong from the international perspective.
According to the report, when the large scale projects like Anaklia Deep Sea Port and hydropower plants investments including Namakhvani and Nenskra HPPs enter a more active phase, FDIs will well exceed 5-6 percent of GDP.