Foreign Direct Investment and Economic Growth in Georgia: an Analysis of Post-Pandemic Trends And Sectoral Transformation (2020–2025)

Abstract

Foreign Direct Investment (FDI) is one of the most significant drivers of development and structural transformation in emerging economies. The study aims to provide a comprehensive assessment of the trends, sectoral structure, and impact of foreign direct investment on economic growth in Georgia during the post-pandemic period (2020–2025). The research is based on a combination of quantitative and qualitative methods, including dynamic, comparative, and correlation analyses. The findings indicate that FDI remains a key driver of the country’s economic growth; however, its impact varies across sectors. Particularly strong growth dynamics are observed in the financial, energy, information and communication technology (ICT), and transportation sectors. At the same time, the study identifies several systemic challenges, including regional disparities, the high concentration of capital in the capital city, and a shortage of long-term strategic investments. The study concludes with practical recommendations to optimize investment policy and enhance the country’s economic resilience