The Business Confidence Index ranking advanced in Georgia

The Business Confidence Index (BCI) advanced in Q2 2018 and made 39.6 points, which is 8.3 points more than the previous month ranking.

ISET draws up the Business Confidence Index together with BIA and ICC Georgia.

According to the survey, improvement is evidenced in almost all the sectors. The industrial sector most positively assessed both current performance and expectations, while the agricultural sector turned out to be most pessimistic.

Answering the question “How has the business performance of your company changed over the last three months?”, 42% of the interviewed companies say that nothing has changed, 36% state that it has improved. 22% of the surveyed companies think that their business performance has worsened during the last three months.

As to the expectations, majority of the surveyed companies expect that their performance will improve in the next three months. Only the representatives of agriculture and construction sectors expect worsening of the situation. It is also noteworthy that the expectations index of large businesses has improved, while it has worsened with small businesses.

Majority of businesses, 58% do not expect any increase of the number of employees, while 33% state that they are planning to hire more staff. 57% of the surveyed businesses expect improvement of business and economic situation in the country within the next three months, but 35% doesn’t expect any changes. The remaining 8% is sure that the situation will worsen.

Answering the question “What are the main factors limiting your business?”, majority of the interviewed companies mention low consumption and lack of access to finance.

236 companies took part in the survey. 26% of large companies and 36% of small businesses stated that the main problem for them is access to finance. For 16% of large companies and 27% of small companies, low consumption/demand is the main issue.

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