Policy & Management Consulting Group predicts FDI decrease in Georgia

Finance Materials 30 June 2020 09:20 (UTC +04:00)
Policy & Management Consulting Group predicts FDI decrease in Georgia

BAKU, Azerbaijan, June 30

By Tamilla Mammadova – Trend:

Global foreign direct investment (FDI) is expected to fall by 30-40 percent in 2020 due to the COVID-19 pandemic, while the decrease in Georgia is forecast at 19 percent, Trend reports referring to Policy and Management Consulting Group (PMCG), an international development consulting company primarily focused on transitional and developing countries.

Net FDI inflows have been decreasing in Georgia since 2017, based on both yearly and first quarter data and net FDI experience volatility over time, due to large one-off investment projects, said the group.

According to the report, net FDI inflows decreased by 41.7 percent in first quarter of 2020 compared to first quarter of 2019, mainly due to COVID-19 pandemic

Over the past decade, net FDI inflows in Georgia experienced growth compared to the preceding year in only four years out of 10: in 2010 (30 percent growth), 2011 (31 percent growth), 2014 (77 percent growth) and 2017 (19 percent growth).

The relatively higher figures between 2014 and 2017 can be explained by large BP investments in Tbilisi-Supsa pipeline and in Baku-Tbilisi-Kars railway project. Thus, Georgian Net FDI inflows remain relatively sensitive to large individual projects, the group concluded.


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