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On 23 May 2017, a meeting was held between the Ministers of Economy of Georgia and Turkey. The Minister of Economy and Sustainable Development of Georgia, Giorgi Gakharia, stated

at the meeting that Turkey is one of Georgia’s most important partners in terms of investments. According to the Minister’s information, the amount of investments from Turkey was USD 73 million in 2015 which is 15% more as compared to 2014. At the same time, according to the preliminarny data for 2016, the amount of investments from Turkey reached USD 272 million which is 275% more (four times larger) as compared to the figure for 2015 and constitutes 17% of all investments made in Georgia that year.

FactCheck

took interest in the accuracy of the statement.

According to the data for last year, Georgia’s largest partner nations in terms of investments are:  Azerbaijan, Turkey, UK, Netherlands, Czech Republic, Luxembourg, Panama, USA and Cyprus. As of 2016, Turkey is 2nd

in the ranking.

Table 1:

 Major Direct Investor Countries to Georgia, USD Million

Country 2012 2013 2014 2015 2016
Azerbaijan 59 82 341 550 578
Turkey 81 43 63 73 272
UK 94 55 108 386 121
Netherlands 35 153 374 155 95
Czech Republic 8 44 52 17 93
Luxembourg 42 143 110 106 79
Panama 10 26 71 10 78
USA 20 45 182 18 45
Cyprus 39 -106 -5 -29 38
Source: National Statistics Office of Georgia  

According to the data for 2015, the amount of investments from Turkey was USD 73 million which is 15% more as compared to 2014. Additionally, according to the preliminary data for 2016, the amount of investments from Turkey reached USD 272 million which is 275% (3.72 times) more as compared to 2015.

Graph 1:

 Turkey’s Foreign Direct Investments in Georgia in USD Million and Growth Rate

 exla  Source: National Statistics Office of Georgia

In regard to the share of Turkey’s foreign direct investments (FDI) in the total amount of FDI made in Georgia, this figure was indeed 17% in 2016.

Foreign direct investments from Turkey are mostly related to the construction of the Baku-Tbilisi-Kars railway, the construction of the Shah Deniz 2 pipeline or other projects implemented in the field of energy.

Conclusion

Giorgi Gakharia names the Turkish foreign direct investment related figures correctly in most of the cases. As for the statistics for 2015, the amount of investments from Turkey was USD 73 million which is 15% more as compared to 2014 whilst the amount of Turkey’s FDI reached USD 272 million according to the preliminary data for 2016 which is 275% more as compared to the figure for 2015 and constitutes 17% of all investments made in Georgia in 2016.

FactCheck concludes that Giorgi Gakharia’s statement is TRUE.