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FDI to help boost high-value products export from Georgia

Business Materials 23 February 2021 21:36 (UTC +04:00)
FDI to help boost high-value products export from Georgia

BAKU, Azerbaijan, Feb.23

By Tamilla Mammadova – Trend:

The agrifood sector in Georgia has great – but still unrealized – potential, the Organisation for Economic Co-operation and Development (OECD) told Trend.

"It accounts for 10 percent of GDP and 44 percent of employment (2019 data), which points to a central problem – low productivity," the OECD noted.

However, this can be rectified: with favourable climatic and soil conditions and an abundance of water resources, Georgia has great potential to attract investment in the agri-food value chain, the source noted. According to the OECD, so far, though, FDI inflows are below potential and the majority of investment in the value chain originates from domestic sources.

"Agri-food exports have grown rapidly over the past two decades but remain highly concentrated in beverages," the OECD said.

According to the source, attracting FDI can help to boost exports of high-value food products, leading to increases in wages and productivity.

The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 37 member countries, founded in 1961 to stimulate economic progress and world trade.

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