2022 FDI inflows were up by 61% in USD terms. Importantly, the increase was largely on the back of the equity component rather than the reinvesting earning only. The dynamics are in line with lagged investment and labor demand following the restart after COVID, and the continued double-digit growth in 2022- TBC Capital report reads.

Therefore, we believe the investment demand should remain strong this year as well. In fact, based on the existing GDP growth figures, probably it had to be even stronger. In this regard, high interest rate environment and prevailing geopolitical uncertainties including the judgment on the migration flows and the sustainability of a stronger GEL are to be counted as constraints the latter being especially relevant as the project financing in Georgia is predominantly in FC.