BAKU, Azerbaijan, June 30
By Tamilla Mammadova – Trend:
The period of 2016-2019 saw significant tendencies in net foreign direct investment (FDI) inflows from Georgia's biggest partners to the country, Trend reports referring to Policy and Management Consulting Group (PMCG), an international development consulting company primarily focused on transitional and developing countries.
As reported, Azerbaijan was the biggest partner in 2016 out of top 5 countries, but the amount of FDI inflows to Georgia decreased drastically by 93 percent in 2019 compared to 2016. It was mainly due to the completion of Baku-Tbilisi-Kars railway project in 2017.
Net FDI inflows from Turkey to Georgia experienced a fall by 81 percent in 2018, which was mainly due to acquisition of Geocell by Silknet. Compared to 2017, however, a massive growth by 377 percent was recorded in 2019.
The highest growth of 358 percent was observed in net FDI inflows from the Netherlands in 2017. Furthermore, in 2017, net FDI Inflow from the United Kingdom to Georgia increased by 190 percent compared to 2016, while FDI Inflows from the United States recorded a growth by 34 percent.
The analysis of net FDI inflows by sectors over the period of 2016-2019 shows that the most FDI over this period was directed to the transportation (21.6 percent), followed by financial sector (15.7 percent) and energy sector (12 percent).
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