Investments in Georgia in 2023

In the second quarter of 2023, the volume of foreign direct investment in Georgia increased by 29,9% compared to April-June 2022 and reached $505,7 million, according to a preliminary estimate by the National Statistics Service of Georgia "Sakstat".

Increased reinvestment was the main reason for this growth. In 2020, during the coronavirus pandemic, the volume of foreign direct investment decreased by 57,2% compared to 2019, amounting to $572 million.

In 2021, the volume of investments doubled, reaching 1,2 billion dollars. The leaders in investments in Georgia are Spain, Great Britain, Turkey, China, the Netherlands and the USA. In 2022, their volume, according to updated data, increased by 67,5% and amounted to 2,1 billion dollars.

Statistics show that investments in the second quarter of this year decreased by 10,7% compared to the first quarter, but increased by 62,8% compared to the fourth quarter of 2022.

The top three countries for investing in Georgia in April-June 2023 are as follows: Great Britain ($168 million), Turkey ($71 million) and the Netherlands ($61 million).

In addition, investments came from the Czech Republic, Malta, Russia, the USA, the UAE, Japan and Azerbaijan.

The most attractive sectors for investment in the second quarter of 2023 in Georgia were financial and insurance activities, energy, manufacturing, trade and real estate. The top three investment sectors are as follows: Financial and insurance activities ($255 million), Energy ($137,2 million) and Manufacturing ($35,6 million).

Reinvestment played a significant role in the economy in the second quarter, increasing by 59,1% to $422,5 million. The introduction of the “Estonian model” of the tax system played a key role in increasing the volume of reinvestment.

As part of the new economic program, the Georgian government promises to review investment policy, moving to an aggressive policy of attracting foreign investment in the post-pandemic period. Mechanisms for coordinating investment activities with central and local authorities will also be strengthened. The new Law on Entrepreneurs will be introduced to comply with EU regulations, bringing Georgian corporate law closer to EU legislation. In order to create a competitive environment, the state will gradually move away from economic sectors capable of independent development.