Georgia enjoys better investment climate, says NBG
Friday, July 3Georgia’s economic relationship with the rest of the world is improving, notes the National Bank of Georgia (NBG).
The latest data showed that as of March 31, 2015, the country’s net International Investment Position (IIP) amounted to -16.8 billion USD (-37.5 billion GEL), which was 103.8 percent of Georgia’s GDP.
This figure has increased by 338.4 million USD (753.8 million GEL) compared with the first quarter of 2014, and decreased by 417.4 million USD (865 GEL) compared to the previous quarter, said NBG.
A country's IIP was a financial statement setting out the value and composition of that country's external financial assets and liabilities. A positive IIP value indicated a nation was a creditor nation, while a negative value indicated it was a debtor nation.
In the past 24 hours the Bank published information about Georgia’s international investment position, which revealed the country’s total international assets amounted to $5.7 billion (12.8 billion GEL) by the end of March 2015.
Reserve assets made up 42.7 percent of total international assets, while other investments comprised 31.6 percent. Direct investment abroad stood at 24.6 percent and 1.1 percent was made up of portfolio investment and financial derivatives.
NBG said a total of 21.7 percent of international assets consisted of currency and deposits; 6.3 percent consisted of trade credits and 3.2 percent were loans. Reserve assets decreased by $246.3 million (510.6 million GEL) during Q1 2015.
By the end of Q1 2015, Georgia’s total liabilities amounted to $22.6 billion USD (50.3 billion GEL). This was a $318.4 billion USD (709.3 billion GEL) annual increase and an $801.3 million USD (1.8 billion GEL) increase on the quarterly base.
Last month Georgia was ranked amongst the top 25 percent of countries for having an investment friendly country by BDO in its latest International Business Compass 2015 ranking.
The country was given an international ranking of 43 of 174 countries. The 2015 result saw Georgia improve its ranking by five places compared to 2014.
Georgia ranked top in the Caucasus region as having the most investment friendly nation, followed by Armenia who ranked in 66th position; a drop of seven places compared to 2014. (agenda.ge)