Economic Overview

Foreign Direct Investments

According to 2006 data, the volume of foreign direct investments made in Georgia amounted to 1.091 billion USD which is 197.2% more compared to the same indicator of 2005. The share of FDI in GDP equals 13.9%.

In 9 months of 2007 the volume of FDI totaled 1.063 billion USD, which is 60.3% more compared to the 9 months’ indicator of 2006.

As for the structure of investments, according to the 9 months data of 2007, the share of investments made in companies is 670.4 million. USD (63%), accordingly, in banks - 115.1 million USD (10.8%), and privatization of companies - 278.0 million USD (26.2%).

It should be mentioned that the share of BP’s investments in the total investments is continuously reducing. Namely, according to the data of 9 months of 2007 BP’s share in total FDI made in Georgia is 8.4% i.e. 89.6 million USD. The same indicator in 2006 was 306 million. USD (25.7% of total FDI), and in 2005 it was 265 million USD (58.9%).  In 2003-2006 years the share of BP’s investments in total FDI reduced from 67.9% to 25.7%. In addition, the volume of other investments in 2003-2006 increased by 310.1%.

 

FDI Structure, 9 months of 2007

Source	Volume (million USD)	Share (%)
Total	1,063.5	100.0
Including:
Companies	670.4	63.0
Banks	115.1	10.8
Privatization	278.0	26.2

Source: Department for Statistics of the Ministry of Economic Development of Georgia

BP Investments

Million USD

	2000	2001	2002	2003	2004	2005	2006	2007 9 months
BP investments			61	231	360	265	306	89.5
Other investments	131	110	107	109	139	185	884	973.9
BP’s share, %			36.1	67.9	72.1	58.9	25.7	8.4
Total Investments	131.2	109.8	167.4	339.4	499.1	450	1190	1,063.5

 

Source: Department for Statistics of the Ministry of Economic Development of Georgia

Source: Ministry of Economic Development of Georgia

 

As for sectoral structure of investments, in the quarter 2 of 2007 the largest share of investments 38.1% comes on energy sector, 25.6% on services sector, 20.3% on construction etc.

 

Structure of FDI according to sectors

(Quarter 2 of 2007)*

 

      Source: Department for Statistics of the Ministry of Economic Development of Georgia

* preliminary data

 

According to 2007 9 months data, the largest amount of investments came from Netherlands – 173.9 million. USD (16.6% of total volume of investments) which is 58 times more compared to 9 months indicator of 2007.

According to the investments made in Georgia second place is taken by Virginia Islands (Britain) from where during 9 months of 2007 121.1 million. USD (11.6%) is invested, that is 137.8% more compared to the last year’s similar indicator.

Third place is taken by Denmark – 92.5 mln. USD(8.8%), which is 8 times (844%) more compared to the same indicator of 2006.

It is worthy to hlighlight the invetsments made by following countries:

·        Turkey – 89.5 million USD (8.6%);

·        USA – 80.1 million USD (7.7%);

·        Kazakhstan – 74.5 million USD (7.1%);

·        Czech – 72.9 million USD(7.0%);

·        Russia – 55.9 million USD (5.3%);

·        Cyprus – 51.1 million USD (4.9%);

·        UK – 50,6 mil. USD (4,8%).

Source: Department for Statistics of the Ministry of Economic Development of Georgia

 

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