FDI inflows up 9.1% y/y in 1Q15
FDI inflows increased 9.1% y/y to US$ 444mn, while the decrease in liabilities owed to foreign investors amounted to US$ 269mn (+89.4% y/y), leading to a 33.9% y/y decrease in FDI to US$ 175mn in 1Q15, according to GeoStat’s preliminary figures. The transport and communication sector was the largest FDI recipient at US$ 146.3mn, increasing 232.9% y/y and accounting for 83.5% of total, followed by construction at US$ 24.5mn (+329.1% y/y, 14.0% of total). Azerbaijan topped the list of investors with US$ 59.1mn (+26.3% y/y, 33.7% of total), followed by Turkey at US$ 26.6mn (-11.0% y/y, 15.2% of total), and Russia at US$ 22.7mn (+14.6% y/y, 12.9% of total). We expect FDI to pick up in the coming quarters due to ongoing projects and the government privatization agenda.
Property registration up 2.5% y/y and company registration down 8.3% y/y in May 2015
Property registration (commercial and residential real estate) increased by 2.5% y/y (-0.8% m/m), reaching 41,867 units in May 2015, according to the National Agency of Public Registry (NAPR). Registration increased for both primary (+1.4% y/y, 18.7% of total) and secondary (+2.8% y/y, 81.3% of total) properties.
Company registration fell by 8.3% y/y (+1.4% m/m) to 3,743 entities in May 2015. Out of newly registered companies, 96.7% were business legal entities while 3.3% comprised non-entrepreneurial (non-commercial) legal entities.
Georgia restores 1-year visa-free rule
After tightening visa rules in September 2014 (granting 90-day visa free access to foreign nationals in any 180-day period), Georgia restored 1-year visa-free access to Georgia for citizens of over 100 countries and territories effective 8 June, 2015. Moreover, visa-free access for up to 90 days is granted to foreign nationals holding visas and/or residence permits of over 50 countries and territories.
