For the first quarter of 2023, business confidence in Georgia increased (by 8.4 index points) and reached 20.1. The highest business confidence is observed in the financial (35.6) sector. The positive change in BCI for Q1 2023 was driven by improved past performance and expectations.
The Past Performance Index, which considers the business sector's assessment of their own economic performance in the previous quarter, increased by 4.3 points compared to Q4 2022 and reached 14.7 for Q1 2023, with the manufacturing (37.6) sector showing the highest past performance.
The Expectations Index, which reflects business optimism, increased significantly, amounting to 34.9 index points. Expectations for Q1 2023 were highest in the manufacturing sector (62.5).
The Sales Price Expectations Index decreased by 5.6 index points and settled at 22.3, indicating a decrease in the share of businesses that anticipate charging higher prices on their products over the next three months.
For Q1 2023 lack of a qualified labor force and limited access to financing are the most significant obstacles for large companies. Meanwhile, limited access to financing and lack of demand are indicated as major constraints by SMEs.