Declining consumer demand has become one of the biggest challenges facing businesses in Georgia, according to Aleksandre Ratishvili, Chairman of the Taxpayers Union and head of bakery producer MCB Georgia. Speaking to BMG, Ratishvili said his own company's experience reflects the broader trend of weakening demand across the market.
Ratishvili attributed the slowdown to persistent inflation, insufficient income growth, and ongoing emigration, arguing that consumers are becoming less able to spend. "Demand is falling because people have less purchasing power. There is no other explanation. Ultimately, consumers' purchasing power is shrinking, and that directly affects businesses," he said.
He argued that temporary measures or attempts to artificially control prices would not resolve the problem. Instead, Ratishvili called for structural reforms, including changes to tax policy and improvements to the investment climate, alongside efforts to reduce administrative burdens for businesses.
His comments come as the latest Business Association of Georgia (BAG) Index shows that weak demand has become a growing concern for companies. In the second quarter of 2026, 32% of surveyed businesses identified insufficient demand as a key obstacle to operations, up from 21% in the first quarter, with the services sector reporting the greatest impact.
