Georgia has faced a significant decline in investment activity. According to data from Georgia's National Statistics Service "Geostat", the volume of foreign direct investment in the second quarter of 2026 decreased by 23.2% compared to the same period in 2025 and amounted to $468.8 million. The main reason for the decline was a decrease in the rate of reinvestment in the country's economy.
Structure of investment flows
An analysis of the investment structure shows a mixed picture. Equity capital, on the contrary, demonstrated growth — it amounted to $210.5 million, which is 32.5% more than in the second quarter of 2025, and accounted for 44.9% of the total investment volume. However, reinvestments, which constitute the main part of inflows (64.1% of all investments), decreased by 35.7% and reached $300.5 million.
Leading investment countries
Investment in Georgia comes from various regions of the world. The top three countries look as follows:
- China — $219.5 million (46.8% of all investments)
- United Kingdom — $123.5 million (26.3%)
- UAE — $47.7 million (10.2%)
In addition, significant investments came from Malta, Turkey, Israel, Azerbaijan, Germany, Russia, Japan and other countries.
Sectors attracting investors
Priority sectors for foreign investors remained unchanged. The most attractive areas were financial and insurance activities (attracting $207.6 million, or 44.3% of all investments), real estate ($119.9 million, 25.6%) and manufacturing ($59.0 million, 12.6%). In addition, investments were directed to construction, trade, energy, transport, arts and entertainment, information and communications, and agriculture.
Government investment priorities
In response to the current situation, Georgian authorities have developed a new economic program. The government promises to shift to an aggressive policy of attracting foreign investment in the post-pandemic period and reconsider the country's positioning on the global investment market. It is planned to strengthen the mechanisms of coordination of investment activities both between central government bodies and local government authorities.
An important step will be the adoption of a new Law on Entrepreneurs, which will meet the requirements of European Union regulations provided for in the Association Agreement. This will allow Georgia's corporate law to align with EU legislation. In addition, the state plans to gradually withdraw from those sectors of the economy that have the potential for independent operation and development, thereby creating a more competitive and favorable business environment.
Historical context of investments
The current investment decline must be considered in the context of recent years. The coronavirus pandemic dealt a serious blow to investment activity: in 2020, the volume of foreign direct investment decreased by 56.4% compared to 2019 and amounted to only $596.2 million. However, recovery occurred quickly — already in 2021, the investment volume grew twofold and reached $1.3 billion, which testifies to the resilience of the country's investment attractiveness even during difficult periods.