FDI down 52.9% y/y in 2020
FDI decreased by 52.9% y/y to US$ 616.9mn (3.9% of GDP) in 2020, according to Geostat’s preliminary figures. The reduction in FDI reflected the ownership transfer from non-resident to the resident units in several companies, which reduced FDI by US$ 340.5mn in 2020. The financial sector was the largest FDI recipient at US$ 400.3mn (+47.1% y/y, 64.9% of total), followed by mining at US$ 101.5mn (+93.8% y/y, 16.5% of total), real estate at US$ 71.8mn (+729.0% y/y, 11.6% of total) and manufacturing at US$ 68.1mn (-41.0 y/y, 11.0% of total). Meanwhile, there was a negative FDI in the hotel and restaurant sector (-US$ 221.5mn) due to ownership transfer. UK topped the list of investors with US$ 307.8mn (+30.1% y/y), followed by Netherlands at US$ 172.1mn (+71.5% y/y), Turkey at US$ 108.1mn (-38.3% y/y) and USA at US$ 93.3mn (-16.3% y/y).
International reserves at US$ 4.1bn in February 2021
Gross international reserves increased by 18.6% y/y to US$ 4.1bn in February 2021 according to NBG. On a monthly basis, the reserves were slightly down (-0.6%). Changes in reserves were attributed to the disbursement of donor funds and FX sales totaling US$ 40mn by NBG in February 2021.
International arrivals down 89.5% y/y in February 2021
Total international arrivals (tourists and same-day arrivals) to Georgia were down 89.5% y/y to 40.5k persons in February 2021, after decreasing by 93.6% y/y in previous month, according to GNTA, reflecting COVID-19 pandemic related restrictions. Overall, in 2M21, total international arrivals stood at 74.3k (-91.8% y/y) persons. Meanwhile, tourism revenues stood at US$ 33.4mn (-90.6% y/y) in 2M21, by our estimates.
