Business Association of Georgia (BAG) published the results of BAG Index for 1Q2022. The survey was conducted in Q1 of 2022 in period 14 – 28 February.
According to the report, in Q1 of 2022, compared to Q4 of 2021, the BAG Business Climate improved by 0.8 points. Moreover, in this period, the assessment of the present business situation worsened (by 0.7 points) and business expectations improved (by 2.5 points). The figures for Q1 of 2022 demonstrate an improvement compared to Q1 of 2021. In Q1 of 2021, the BAG Business Climate indicator was 14.6, the present business situation indicator equaled 11.8, while the business expectations indicator sat at 44.9. It is worth noting that starting from Q1 of 2021, the BAG Business Climate indicator has been positive and gradually improving. In Q1 and Q2 of 2021, this was mostly caused by optimistic business expectations, while from Q3 of 2021 onwards the positive assessment of the present business situation by the majority of businesses played a part too.
In Q1 of 2022, compared to Q4 of 2021, the present business situation indicator improved in trade and service sectors and worsened in manufacturing and construction sectors. Nevertheless, despite the overall view of the present business situation in manufacturing sector worsening, compared to the previous quarter, the surveyed businesses still assessed the present situation positively. Regarding the construction sector, it is worth noting that the indicator is negative. The negative assessment of present business situation in the construction sector could be attributed to decreased sales (37.5% of surveyed businesses stated that their sales decreased in Q1 2022 compared to Q4 2021 and only 13% stated an increase). The most positive assessment with respect to the present business situation was recorded in the trade sector.
In Q1 of 2022, the business expectations indicator was positive for all sectors. It is worth noting that expectations significantly worsened for the trade sector compared to Q4 of 2021. Elsewhere, the business expectations indicator improved in service, construction and manufacturing sectors.
