**Georgia’s Foreign Direct Investment Sees 7.7% Decline in First Quarter of 2025**
In a report released on June 9, the National Statistics Office (Geostat) revealed that foreign direct investment (FDI) in Georgia totaled USD 179.4 million during the first quarter of this year. This represents a significant decline of 7.7% compared to the same period last year.
The main reason behind this decrease is attributed to reductions in equity and debt instruments, according to Geostat. Despite this drop, the organization remains optimistic about the overall performance of the country’s economy. Let’s take a closer look at the numbers.
**Breakdown of FDI by Country**
The top investor in Georgia during the first quarter was the Czech Republic, which contributed USD 43 million (23.9% of total FDI) to the country’s economy. The United States came second with an investment of USD 39.6 million (22.1%), followed by Turkey with USD 28.1 million (15.7%). The British Virgin Islands and Azerbaijan ranked fourth and fifth, respectively, with investments totaling USD 25.4 million (14.2%) and USD 25 million (13.9%).
**Sectoral Distribution of FDI**
The energy sector attracted the highest share of FDI in Georgia, with a total investment of USD 70.2 million (39.1%). This is followed by the information and communication sector, which received USD 52.3 million (29.2%), and the manufacturing sector with an investment of USD 27.5 million (15.3%).
**Commentary**
While the decline in FDI may be concerning for some, it’s essential to consider the broader context of Georgia’s economy. The country has been experiencing steady growth, with GDP increasing by 7.5% in April and foreign trade rising by 15.3% over the same period. Annual inflation remains relatively low at 3.4%, and GDP grew by a whopping 9% in March.
**Conclusion**
Georgia’s FDI performance may have seen a decline in the first quarter of this year, but the country’s economy is showing resilience in other areas. As investors continue to explore opportunities in various sectors, it’s crucial for policymakers to identify strategies that can help mitigate the impact of reduced FDI and foster growth in other industries.
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