The Business Association of Georgia (BAG) published BAG Index. According to the document, in 1Q2024, the surveyed businesses assess their present business situation and expectations for the net six months positive. The BAG Business Climate Indicator amounts to 43.6 points in 1Q2024.
In Q1 of 2024, compared to Q4 of 2023, the BAG Business Climate declined by 0.4 points. Moreover, in this period, the assessment of the present business situation declined by 10.1 points, and business expectations increased by 10.1 points.
The figures for Q1 of 2024 demonstrate a deterioration compared to Q1 of 2023. In Q1 of 2023, the BAG Business Climate indicator was 46.8. The present business situation indicator also declined (38.6), meanwhile, the business expectations indicator increased (55.3).
It is worth noting that starting from Q1 of 2021, the BAG Business Climate indicator has been positive and gradually improving up until Q3 of 2023 (following the increasing trend, since Q3 of 2023, the business climate index is slightly declining compared to the previous quarter.
In Q1 of 2024, the business climate indicator was positive for all sectors. Compared to Q4 of 2023, in Q1 of 2024, the indicator improved in the trade and construction sectors but worsened in the manufacturing and service sectors.
In Q1 of 2024, compared to Q4 of 2023, the present business situation indicator worsened in service (by -14.7 points), trade (by -10.4 points), and manufacturing (by -1.2 points) sectors, and remained the same in the construction sector.
In Q1 of 2024, the business expectations indicator was positive for all sectors. The most positive expectations were recorded in the construction sector. It is worth noting that, compared to Q4 of 2023, expectations worsened in the manufacturing (-16.7 points) sector, while for trade (26.5 points), construction (20.0 points) and service (3.5 points) sectors business expectations improved.
