Investment in Georgia decreased: forecasts and recommendations
The most popular sectors for investment in Georgia in the third quarter of 2020 were the financial sector, energy and processing industry.
Against the background of the coronavirus pandemic, the volume of foreign direct investment in Georgia, according to preliminary estimates, in the third quarter of 2020 decreased by 23.6%, compared with updated data for the same period in 2019, and amounted to $ 302.6 million, the national statistics service of Georgia "Sakstat" -said.
In the third quarter of 2020, the United Kingdom, the Netherlands and the United States became the leaders in investing in Georgia. The share of capital investment in these countries is 73.1% of the total investment volume.
Investments also included mining ($31 million), real estate ($20.6 million), communications ($14.9 million), hotels and restaurants ($7.9 million), health and social care ($2.7 million), agriculture and fishing ($1.6 million), and so on.
Forecasts and recommendations
The coronavirus pandemic has created problems in all respects, the exception is neither investment nor Georgia, said Giorgi Gaganidze, an expert on foreign economic issues.
According to him, the main focus is now on the spring of next year, both in terms of correcting the epidemic and restoring the economy. Therefore, most likely, we should expect an increase in direct investment from the second quarter of 2021.
"The increase in investment will depend on the state of the global economy. Let's see what effect the vaccinations started in the world will have. If this is a sign that the pandemic is over, then it is obvious that the economy will start to recover. In this case, the amount of investment will increase. If the vaccine does not show effectiveness, the result will be the same as this year, "Gaganidze told the Rezonansi newspaper.
The expert noted that the pandemic has changed a lot and now a lot depends on it.
"Special attention is paid to those industries that have a high export potential in Georgia. These are the areas that are related to the pharmaceutical industry. I would recommend that the Georgian government develop a special package to attract large pharmaceutical companies to the country to produce certain medicines locally. For example, in England, where vaccinations are carried out, the drug is produced in Belgium. This industry has a great potential," Gaganidze said.
The volume of foreign direct investment in Georgia in the first quarter of 2020 decreased by 41.7%, compared to preliminary data for the same period in 2019, and amounted to $ 165.4 million. In the second quarter of 2020, the volume of investments increased by 0.5%, compared to the data for the same period in 2019, and amounted to $ 237.8 million.
Sputnik-georgia.ru
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Investment in Georgia decreased: forecasts and recommendations
The most popular sectors for investment in Georgia in the third quarter of 2020 were the financial sector, energy and processing industry.
Against the background of the coronavirus pandemic, the volume of foreign direct investment in Georgia, according to preliminary estimates, in the third quarter of 2020 decreased by 23.6%, compared with updated data for the same period in 2019, and amounted to $ 302.6 million, the national statistics service of Georgia "Sakstat" -said.
In the third quarter of 2020, the United Kingdom, the Netherlands and the United States became the leaders in investing in Georgia. The share of capital investment in these countries is 73.1% of the total investment volume.
Investments also included mining ($31 million), real estate ($20.6 million), communications ($14.9 million), hotels and restaurants ($7.9 million), health and social care ($2.7 million), agriculture and fishing ($1.6 million), and so on.
Forecasts and recommendations
The coronavirus pandemic has created problems in all respects, the exception is neither investment nor Georgia, said Giorgi Gaganidze, an expert on foreign economic issues.
According to him, the main focus is now on the spring of next year, both in terms of correcting the epidemic and restoring the economy. Therefore, most likely, we should expect an increase in direct investment from the second quarter of 2021.
"The increase in investment will depend on the state of the global economy. Let's see what effect the vaccinations started in the world will have. If this is a sign that the pandemic is over, then it is obvious that the economy will start to recover. In this case, the amount of investment will increase. If the vaccine does not show effectiveness, the result will be the same as this year, "Gaganidze told the Rezonansi newspaper.
The expert noted that the pandemic has changed a lot and now a lot depends on it.
"Special attention is paid to those industries that have a high export potential in Georgia. These are the areas that are related to the pharmaceutical industry. I would recommend that the Georgian government develop a special package to attract large pharmaceutical companies to the country to produce certain medicines locally. For example, in England, where vaccinations are carried out, the drug is produced in Belgium. This industry has a great potential," Gaganidze said.
The volume of foreign direct investment in Georgia in the first quarter of 2020 decreased by 41.7%, compared to preliminary data for the same period in 2019, and amounted to $ 165.4 million. In the second quarter of 2020, the volume of investments increased by 0.5%, compared to the data for the same period in 2019, and amounted to $ 237.8 million.
Sputnik-georgia.ru
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