Page 71 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.81, # 1, 2024, pp. 65-75

In 2022 compared to 2021, the volume of direct foreign investments from EU
countries has almost tripled. And in 2023, it amounted to 524,874 thousand US
dollars.

Chart N6 Direct investments made in Georgia by country groups (2021-2023
years, thousand US dollars)
1.200.000

965.205
963.392
1.000.000 930.276
793.360
800.000
thousand US dollars 600.000 353.666 524.874 218.891

400.000
167.971
200.000
102.012
0
EU countries CIS countries Other countries
2021 2022 2023

Source: Compiled by the author. The data of the National Statistical Service of
Georgia are used (National Statistical Service of Georgia, Direct foreign investments
in Georgia in 2022 2023)

In 2021-2023, the volume of direct foreign investments from the CIS countries
doubled, although its share in the total volume is small.

It should be noted that in 2013-2023 the most investments (from EU countries) came
from the Netherlands - 2,385,293 thousand US dollars.

Except for Georgia, none of the neighboring countries have a free trade regime with
the European Union, which makes Georgia an attractive country for direct foreign
investments. In the case of production of local raw materials and investment in
Georgia, the investor has the opportunity to export products to the EU market with
zero customs tariff (Bujiashvili, How did the European Union help Georgia and why

Georgia should join the European Union 2022).

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