FDI Declines in Georgia

Author(s): Maia Edilashvili
Editor(s): Iris Kempe, Matthias Neumann, Robert Orttung, Jeronim Perovic, Lili Di Puppo
Series: Caucasus Analytical Digest (CAD)
Issue: 28
Pages: 14-16
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Resource Security Institute (RSI), Arlington; Heinrich Böll Foundation, Tbilisi; Research Centre for East European Studies, University of Bremen
Publication Year: 2011

Following an unprecedented surge in foreign direct investment in 2007, Georgia is suffering from a gradual decline in FDI inflows. Both local and international experts are unanimous in noting that the country is facing a tough challenge to either achieve a strong rebound of FDI or stimulate growth in high potential sectors of the economy in order to sustain the GDP growth rate and fully restore investor confidence.

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