CCI sees improvement. The Consumer Confidence Index has experienced a significant positive shift, increasing by 6 index points – from -20.1 in November to -14.1 in December. Both the Present Situation Index and the Expectations Index contributed to this notable increase; however, the predominant factor was the rise in expectations (the Present Situation Index rose by 4.7 points and the Expectations Index by 7.4).

After a drop in consumer expectations about making savings in November, the indicator reversed the trend and reached its highest point in years, while still remaining negative. According to the survey, 36% of consumers are likely to save some money during the upcoming year, in contrast to the respective share of 22% in November. Furthermore, the capacity to save had also improved compared to November. The share of consumers that are currently able to make savings increased from 10% to 26%, and the proportion of people whose current expenditure is greater than their income is 20% compared to 25% in November. In spite of improvements, this indicator, similar to the savings indicator, is tilted towards the negative.

In addition, consumers appeared to have more positive sentiment towards changes in their personal financial situations, as well as their expectations, regarding their financial bearing over the upcoming year. Consequently, 41% of the respondents consider their financial situation to have improved over the last year and 42% expect it to get better within the upcoming year.

One possible explanation for rising expectations could connect to a statement from the Prime Minister about teachers’ salaries, which will rise on average by 500 GEL in 2024. Moreover, it has been announced that this year pensions will grow by 20 or 50 GEL depending on age. The fact that Georgia has also now obtained EU candidate status might further be positively affecting the CCI.

Tbilisi VS the Regions. Contrary to previous trends, the CCI has slightly declined among Tbilisi residents (by 1 point), whereas for residents throughout the rest of Georgia it significantly increased (by 12 points). This disproportionate development led to the CCI of Tbilisians to be lower compared to those residents in the regions.

Note: Starting in July, the CCI underwent minor shifts in methodology. Specifically, the questionnaire was slightly modified, in terms of how questions were formulated when conducting a survey.