BAKU, Azerbaijan, June 10
By Tamilla Mammadova – Trend:
Foreign direct investments (FDI) are declined in Georgia, said Executive Director of the Business Association of Georgia Levan Vepkhvadze, Trend reports via Georgian media.
Vepkhvadze said that 1Q2021 should not be compared with the same period of the previous year, as the trend should be assessed in general within the last 3-4 years.
"The dynamics have been very bad for the last 3-4 years, as foreign direct investments have declined. It seems that the favorable environment (including the liberal tax regime) assessed by the international rating companies is not enough to attract foreign direct investments,” said Vepkhvadze.
He named the factors hindering the inflow of foreign direct investments into Georgia.
“We must think how to attract investors in Georgia, how can we arise their interests, who are expecting an improvement of the situation. There are complex problems, including the lari exchange rate, which is additional pressure for any investment project. We want new investments, but on the other hand, the investor looks at how ready the local workforce is for the new technology”, Vepkhvadze said.
In addition, Vepkhvadze considers that FDI in the energy sector is insignificant.
“Some $35 million has been invested in energy sector this year, but this FDI is insignificant, as those projects have many barriers, including problems with the local population,” said Vepkhvadze.
Foreign direct investments in Georgia amounted to $125.4 million in 1Q2021, which was down by 28.3 percent compared to 1Q2020.
The largest share of FDI was registered in the financial sector, reaching $93.9 million (74.9 percent), the energy sector was the second with $35.5 million (28.3 percent), followed by the manufacturing sector with $27.9 million (22.2 percent).
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