Prospects of receiving investments

Economic analysts are unanimous that an important element of Georgia’s economic growth depends on direct foreign investments. According to rough estimation, to achieve sustainable economic growth, Georgia needs up to USD 2 billion annually from foreign direct investments. But, unfortunately, in 2009-2010 the FDI inflow into Georgia fell dramatically. There are different factors for the decline in foreign investment. Of course, the world economic crisis of 2008-2009 and its results are still being felt and investments decreased everywhere in the world. There was another factor which concerned Georgia primarily – this was the Russian aggression against Georgia. The threat of repeated aggression has often been discussed by different analysts. Maybe Russia has sustaining a stubborn approach deliberately. It does not really want to repeat the aggression but speculates about it, thus discouraging investors from entering the Georgian market. There are some other factors which indicate a certain level of stability in the Georgian economy. There have been achievements made in conducting business, registering business, transparency of business and some other indicators. So, perhaps the country will become more attractive to investors in 2011.