In May 2017, the Consumer Confidence Index (CCI) sustains its upward trend, increasing by 3.6 points compared to April (moving from -25.6 to -21.9). Its first component, the Present Situation Index, rises by 3.4 points (from -32.8 to -29.4), and it second component, the Expectations Index, goes up by 4.2 points (from -18.5 to -14.3).

In April, the CCI went up by 5.4 points (from -31 to -25.6). We believe that two factors stimulate the raised consumption mood of Georgians: firstly, the new opportunity to travel visa-free to the countries of the European Union; secondly, the stabilization of the lari exchange rate.

After the sharp fall in consumer confidence that occurred in December 2016, the index continues in a mostly horizontal direction with a minor but still noticeable negative trend. March 2017, with a minor decrease by 0.1 points, very much fits in this story of a “slow death of the Georgian economy”. The present situation index decreased by 0.3 points, albeit much less than in the previous months, while the expectations index has stayed literally the same (-25.4 points). Maybe this indicates a stabilization (though at a low level) or even heralds a turnaround?

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