For the third quarter of 2021, business confidence in Georgia improved significantly (by 34.7 index points) and reached 36.4. The increase in business confidence is observed in all sectors and is driven by optimistic future expectations and improved past performance in light of economic recovery and relaxed pandemic restrictions.
The Past Performance Index, which considers the business sector's assessment of their own economic performance in the previous quarter, increased by 50.7 points compared to Q2 2021 and reached 46.6 in Q3 2021 with the agricultural sector showing the greatest improvement in past performance.
Expectations Index, which reflects business optimism, sharply improved after a slight decrease in Q2 2021, amounting to 45.2 index points. Expectations for Q3 2021 remained the same for the financial sector and increased for all other sectors.
The Sales Price Expectations Index increased by 1.2 index points and reached 18.4 points, indicating a slight increase in the share of businesses that anticipate charging higher prices on their products. The increase in Sales Price Expectations Index is driven solely by the manufacturing sector.
Limited access to financing and a lack of demand continues to be one of the key obstacles for both large companies and SMEs. Also, the lack of qualified labor became an important problem for large companies for Q3 2021.