Lasha Kavtaradze, Galt & Taggart economist, stated that foreign direct investment (FDI) has returned to its usual level after a temporary increase, primarily driven by one-off transactions like the sales of Rustavi Azot and Georgian Water and Power in 2022-2023.
In 2023, FDI dropped by 30% to USD 1.3 billion due to declines in equity capital and reinvestment. Kavtaradze mentioned that post-pandemic investment growth has been mainly driven by reinvestments, which accounted for 88% of total DFI in 2024.
“Foreign investors are staying and reinvesting, but fresh equity capital is still lacking,” he said, adding that Georgia needs new foreign investments rather than relying on past reinvestments.
