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Index, Country Brand Index, Best Countries for Business, Doing Business), which rely on the
data provided by the international scientific research and rating organizations (Heritage
Foundation, World Economic Forum, Transparency International, Freedom House, World Bank,
Central Intelligence Agency and Property Rights Alliance, etc.).
Georgia’s economics innovative development of the last years and the attitudes of the different
countries’ citizens towards Georgia as well as achieved progress in this direction, which were
reflected on the international ratings, influenced the flow of the direct investments into the
country and thus, became one of the main components of the GDP growth in the country. If
we look through the dynamics, (See. Diagram 1), 5 we will notice that the in the last years the
growth is significantly reduced.
Year Total EU Countries CIS Countries Rest countries
2003 340,070.1 95,783.2 74,045.2 170,241.6
2004 499.106.5 195,542.3 114,452.1 189,112.2
2005 449,784.8 243,749.0 107,754.3 98,281.6
2006 1,190,374.6 407,189.7 266,414.3 508,028.9
2007 2,014,841.6 1,132,726.1 238,389.0 629,432.6
2008 1,563,962.4 476,655.2 94,695.6 968,960.7
2009 658,400.6 224,722.2 1,024,4 390,847.9
2010 814,496.6 348,211.4 91,155.6 429,943.5
2011 1,117,244.1 554,239.0 193,048.3 275,060.3
2012 911,564.3 440,348.3 86,736.5 321,024.8
2013 941,902.6 390,743.5 131,506.9 364,971.5
2014 1,272,452.0 640,507.4 353,048.6 384,991.0
Diagram 1. Direct foreign investments (2003-2014 US$)
In Georgia, the sharp increase of investment flow was noticed from 2003, which was stipulated
by the reforms carried out in the different directions, comparative fiscal stability, liberal
economic course, putting the number of incomes into the legal frames and the mass PR
campaigns on the international level organized by the Georgia’s government in order to
improve the country’s image and reputation. These of course, had a positive effect on the
investment attraction and on the growth of the GD Correspondingly, in 2007 in this direction a
huge jump was made and for 22 years of independence of Georgia the highest indicator was
detected - 2,014,841.6 thousand US $. The reduction of the investments started from 2008,
particularly, in the 3rd and 4th quarters. After the world crisis and Georgian-Russian War.
However, the annual investments still achieved quite a solid mark - 1,563,962.4 thousand US$,
Nevertheless, in 2009-2010it significantly lessened comparing to the previous year –only
658,400.6 and 814,496.6 thousand US $.
In 2013 the economic growth of Georgia reduced sharply. GDP from 6% went down to 2% and
this process still continues. According to Regional Economic Prospects, 2013 report made by
the EBRD - European Bank for Reconstruction and Development - this was instigated byte
5 Direct foreign investments (2003-2012) the diagram is made according to the data of National Statistics office of
Georgia (retrieved from http://www.geostat.ge/?action=page&p_id=139&lang=geo )
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