The Georgian Business Confidence Index (BCI) continues to decline, albeit at a slower pace. The first-quarter decrease in the Index was mostly driven by a significant decline in past performance.
After three-quarters of continuous improvement, the Past Performance Index, which reflects businesses' self-assessment of their own economic performance in the previous quarter, posted a significant drop. Compared to others, the agriculture sector assessed its performance most negatively.
Business optimism about the overall economy has recovered slightly. In other words, a small majority of business respondents expect their economic performance to improve in the next quarter. The highest increase in expectations was recorded in the retail trade sector.
The Sales Price Expectation Index increased substantially. Businesses in the construction sector predict the highest price increases in the next quarter.
Large businesses demonstrate a more positive outlook compared to Small and Medium Enterprises.
Irrespective of their size, businesses name lack of demand and finances as the main factors that limit their activity.