In Q1 of 2025, Georgian businesses assess the business climate to be much less favorable than that of Q1 of 2024 (- 12.8 points), according to the report published by PMCG.
As of the document, during this period, both present business situation (-17.0 points) and business expectations (-9.1 points) deteriorated significantly.
PMCG writes that in 2024, Georgia’s business climate saw a significant downturn in Q2, primarily due to political instability and mass civil protests against the bill on Transparency of Foreign Influence.
"Although there were signs of recovery in Q3, the situation deteriorated again in Q4 and continued into Q1 of 2025, once more driven by ongoing political developments.
In Q4 of 2024, the Georgian Economic Climate deteriorated sharply compared to the previous quarter. Although there was a recovery in Q1 of 2025, the index remained negative and below the Q3 of 2024 level. Specifically, the Economic Climate Index in Q1 of 2025 was 26.6 points lower than in Q3 of 2024. Moreover, during the same period, assessments of the present economic situation and future expectations declined by 14.5 and 45.5 points, respectively.
The particularly steep decline in expectations during Q1 of 2025 reflects a pessimistic outlook among Georgian economists, largely attributed to the ongoing political crisis in the country", - the document reads.
