Consumer confidence on the rise. The CCI has increased by 4.8 index points, from -28.8 in March to -24 in April. Both the Present Situation Index and Expectations Index contributed to this growth – the Present Situation Index grew by 7.2 index points, while the Expectations Index rose by a more moderate 2.5 points.
Consumers have also begun to evaluate the current period more positively for making major household purchases, potentially because of the recent strengthening of the Georgian lari against the USD. In March, consumers started to feel stronger about making major household purchases in the future, and by April this positive change was already evident.
Furthermore, there has been a positive change in consumer expectations towards future price levels. This could possibly be attributed to declining inflationary trends over the past few months in Georgia – where the rate of inflation declined from 5.3% in March to 2.7% in April (Geostat, 2023).
Additionally, consumers reported better financial standing in their personal situations in April compared to March. This may have been influenced by the recent reduction in inflation and by the strengthening of the local currency.
BAR CHARTS: Consumer Responses by Questions