Natia Turnava comments on decrease of Foreign Direct Investments

The Minister of Economy Natia Turnava spoke about the new statistical report, confirming that Foreign Direct Investments have decreased by 53.7 % in the second quarter of this year.

In the statement published by the Georgian Ministry of Economy, Natia Turnava said that while the decrease in FDIs is definitely a challenge for the Georgian Economy, there is a solid and continuous increase in local investments.

“Georgian investments are steadily increasing and it is very important for me, as the Minister of Economy of Georgia, that a Georgian investor, a Georgian entrepreneur, despite political instability, believes that the Georgian economy is attractive and invests money in the development of its businesses. This is of primary importance.

Of course, foreign investment is also important for our country, and thanks to our updated investment policy we have been able to build a very attractive portfolio in 2019. This is GEL 3.5 billion investment in energy, processing industry and these are real projects that are being built or started this year and will be reflected in next year's statistics,” said the Minister.

According to Geostat, in the second quarter of 2019, most investments - 34 percent of the total, were made in the energy sector. According to preliminary data, $ 63.7 million was invested in energy. That's up 31 percent from the first quarter of 2019, though down 37.5 percent from the second quarter of 2018.

Most investments came from the Netherlands in the second quarter ($ 58.1 million), followed by Turkey ($ 36 million), and the US in the third-place ($ 27.5 million).

Among the new major investment projects, Turnava highlighted Namakhvani HPP, which will start construction by the end of the year, as well as construction of electric car production factory in Kutaisi.

Turnava also mentioned Anaklia Port and its potential for the country’s economic growth.

“Of course we had expectations and it would’ve been good if we could invest in Anaklia deep-sea port this year, as planned. We have been waiting for this investment since 2017. Unfortunately, however, at the request of the consortium, we had to postpone again. Otherwise, it would be a very solid investment for this year's statistics,” said the Minister.