In 2017, foreign direct investment (FDI)
inflows in Georgia grew 16% compared to 2016 and reached a historic
high for the entire period of independence as per the Minister of Economy Dmitry Kumsishvili.
According to him, growth was provided by the increase in
reinvestment, which in comparison with 2016 increased by 129% to GEL 700
“This confirmed that the introduction from
January 1, 2017 the so-called Estonian model that envisages exemption from the tax on reinvested profits was the right step and the reform really works, "the Minister
In Kumsishvili’s words, before the Estonian
taxation model was launched, reinvestment in Georgia did not exceed $ 300
million, and only one year was enough to double the figure.
about the capital that without the Estonian model would have most likely
been withdrawn abroad, and only thanks to benefits it was decided to leave it in the country and spend on reinvestment and new jobs creation," the Minister
Kumsishvili notes that the current investment rate is the highest for the entire period of independent Georgia.
"This record shows that the reforms are working and inertia is gaining momentum. As we expected, they will have a much greater effect in the next 3 years, both in terms of economic growth and jobs creation, "the Minister of Economy says.