ISET

The Georgian Consumer Confidence Index (CCI) continued to recover for the fourth straight month in May 2016, gaining 0.9 points from April 2016. At -28.2 points, the CCI remains well below the peak level of -1.4 points recorded in November 2013, but is markedly stronger compared to the bottom of about -40 points reached in Fall 2015.

In April 2016, the consumer confidence index (CCI) continued to increase, sustaining the trend which started in January. From an economic perspective, the lari’s appreciation (from 2.32 to 2.23 GEL/USD) was one of the most important visible developments in April. Furthermore, with Easter celebrations underway, many stores offered discounts on a variety of consumer items. This helped position April as a good time for major purchases in the minds of consumers. Lastly, the pre-election period has started, affecting the expectations component of the index.

In March 2016, the consumer confidence index (CCI) continued the increasing trend that started in October 2015. The index gained 8.6 points compared to the historic low of September 2015. Although an upward trend is clearly visible, the current CCI is still some 30.4 points adrift of the highest point seen in November 2013. Some of the factors behind the increase in March were the appreciation of the lari against the U.S. dollar, a decrease in food prices and a good winter tourism season. Interestingly, the largest improvement of the CCI was observed for respondents aged below 35, signaling that recent proactive government measures to improve the business climate may have influenced people’s perceptions.  

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