5 Factors Which Hinder Business Activity – BAG Index

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17.Jun .2021 11:30

5 Factors Which Hinder Business Activity – BAG Index

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Author:Natia Taktakishvili

In Q2 of 2021, compared to Q1 of 2021, the share of surveyed companies to claim there are factors hindering their business activity increased by 3 percentage points and reached 77%, - show the data from BAG Index.

According to the report, in Q2 of 2021, five factors were emphasized as the most hindering for business activity: volatility of national currency exchange rate, legal and administrative barriers, weak demand for products and services, a lack of specialists and financial constraints.

In Q2 of 2021, the volatility of the national currency exchange rate was cited as the top factor hindering business. It was cited by 91% of companies in the manufacturing sector, 81% in the trade sector, 68% in the service sector, and 67% in the construction sector.

Among the factors hindering business activity, the share of companies citing weak demand as a hindering factor decreased the most, compared to the previous quarter (by 15 percentage points), while the largest increase was recorded in the problem regarding the lack of specialists (by 12 percentage points).

Manufacturing Trade exchange rate BAG index