FDI up 53.9% in 4Q14 and up 35.1% in 2014
Georgia’s 4Q14 FDI increased 53.9% y/y to US$ 349.2mn, according to GeoStat’s preliminary figures. The transports and communications sector was the largest FDI recipient with 26% of total, followed by the construction sector (25%), and the financial sector (22%). Azerbaijan topped the list of investors with US$ 83.6mn (24% of total), with Netherlands coming in second at US$ 66.8mn (19%), followed by UK at US$ 65.8 (19%).
FDI in 2014 increased 35.1% y/y to US$ 1.27bn. The transport and communications sector was the largest FDI recipient at US$ 343.4mn accounting for 27% of total, followed by the construction sector at US$ 294.9mn (23%), and manufacturing at US$ 174.0mn (14%). Netherlands topped the list of investors with US$ 331.2mn (26% of total), followed by Azerbaijan at US$ 302.1mn (24%), and China at US$ 195mn (15%).
Exports down 22.7% y/y and imports down 3.5% y/y in February 2015
Exports decreased 22.7% y/y to US$ 167mn, while imports were down 3.5% y/y at US$ 571mn in February 2015, according to GeoStat’s preliminary figures. As a result, the trade deficit reached US$ 404mn, up 7.5% y/y in February 2015.
International cooperation continues
An agreement on co-operation for the development of the “New Silk Road Economic Belt” was signed between China and Georgia in Beijing on March 9th. The agreement is meant to foster a new type of co-operation between contracting countries, directed at optimization of bilateral trade, collaboration in the field of infrastructure development, and strengthening of investment co-operation.
On March 11, 2015 Moody’s released a credit opinion on Georgia’s Ba3 sovereign credit rating with positive outlook (affirmed in August 2014). According to the credit rating agency, Georgia’s key rating strengths are the low and concessionally priced public debt of Georgia and the EU DCFTA, a supporting factor for attracting additional foreign direct investments (FDI) and boosting export potential.
