Business confidence in Georgia improved in the second quarter of 2026, according to the latest BAG Index published by the Georgian Business Association. The business climate indicator increased by 5.1 points compared with the previous quarter, reaching 47.6 points.
Companies reported stronger assessments of both their current situation and future expectations. The current business conditions index rose by 11.4 points, while the expectations indicator improved by 10.1 points. The services sector recorded the highest business climate score, with companies expressing the most positive views on both current activity and future prospects.
Businesses identified a shortage of qualified specialists and legal and administrative barriers as the main challenges affecting operations. While the impact of workforce shortages decreased slightly, concerns over regulatory barriers increased by 6 percentage points, and weaker demand became a more significant issue.
Overall, 57% of surveyed companies reported factors limiting business activity, a 2 percentage-point decline from the previous quarter. The BAG Index is based on assessments from members of the Georgian Business Association and follows the methodology of Germany’s ifo Institute for Economic Research.
