Foreign investment fell 23% in Q2 — and real estate took a quarter of it

Three countries supplied the overwhelming majority of the quarter's inflow. China accounted for 219.5 million dollars, or 46.8 percent of the total. The United Kingdom followed with 123.5 million, 26.3 percent. The United Arab Emirates came third at 47.7 million, 10.2 percent. Together that is more than 83 percent of all foreign direct investment recorded in the quarter, which tells you something about how concentrated the pipeline currently is: a change of plan by one or two large investors moves the national figure.

The reported cause of the 23.2 percent drop is lower reinvested earnings rather than a collapse in new money. That distinction matters, because reinvestment is what a company does with profit it already made in Georgia, and it moves with company-level decisions about dividends and expansion rather than with a country's attractiveness in a given quarter. It is also the most volatile component of the headline FDI number in most small economies, which is a reason to read a single quarter cautiously in either direction.

At 119.9 million dollars, real estate activities were the second-largest recipient sector in the quarter, ahead of manufacturing at 59.0 million and behind only financial and insurance activities at 207.6 million. For an owner or a developer, the useful part is not the headline but the composition: foreign capital in Georgian property is still arriving at scale while the overall FDI total is contracting. What this data cannot tell you is which cities or segments it went into, since the published breakdown is by sector and source country rather than by location or asset type.