For the third quarter of 2023, business confidence in Georgia decreased (by 10.7 index points) and reached 15.7. The highest business confidence is observed in the financial (26.4) sector. The negative change in BCI for Q3 2023 was driven by worsened past performance as well as less optimistic expectations.
The Past Performance Index, which considers the business sector's assessment of their own economic performance in the previous quarter, decreased by 9.1 points compared to Q2 2023 and reached 12.7 for Q3 2023, with the manufacturing (25.0) sector showing the strongest past performance.
The Expectations Index, which reflects business optimism, decreased significantly, amounting to 28.5 index points. Expectations for Q3 2023 were highest in the manufacturing sector (50.0).
The Sales Price Expectations Index decreased by 11.0 index points and settled at 17.3, indicating a decrease in the share of businesses that anticipate charging higher prices on their products over the next three months.
For Q3 2023 lack of a qualified labor force and lack of demand are the most significant obstacles for large companies. Meanwhile, limited access to financing and lack of demand are indicated as major constraints by SMEs.