ISET published a document on the Business Confidence Index. According to the report, for the third quarter of 2024, business confidence in Georgia decreased (by 2.8 index points) and reached 13.6. The highest decrease in business confidence is observed in the construction (-12.5) sector. The negative change in BCI for Q3 2024 was driven by less optimistic expectations.
The Past Performance Index, which considers the business sector's assessment of their own economic performance in the previous quarter, increased moderately by 3.6 points compared to Q2 2024 and reached 12.8 for Q3 2024, with the construction (18.2) and agriculture (10.0) sectors showing the biggest improvement.
Expectations Index, which reflects business optimism, decreased and settled at 22.5 index points. Expectations for Q3 2024 worsened significantly for the construction (-25.0) and service (-23.3) sectors.
The Sales Price Expectations Index increased slightly by 1.1 index points and reached 20.7, indicating only an insignificant increase in the share of businesses that anticipate charging higher prices on their products over the next three months.
For Q3 2024, the lack of a qualified labor force continues to be the most significant limiting factor for large companies. Lack of demand comes in second as a hindrance for these large companies. As for SMEs, lack of demand and access to finance are the most important obstacles.
