Decline in the CCI. After the Consumer Confidence Index rose in March, the trend once again reversed in April – with the CCI declining by 4 index points, from -13.8 in March to -17.8 in April. Both the Present Situation and the Expectations Index each decreased, however, the decline was more prominent for people’s expectations; the Present Situation Index decreased by 1.6 points, while the Expectations Index fell by 6.4 points.

The highest M-o-M decline was evident in people’s expectations about the upcoming general economic situation in Georgia. If in March 16% of respondents thought the country’s economic situation would significantly worsen within the upcoming year, in April almost a quarter of respondents (24%) shared this sentiment.

Another declining trend derives from consumers’ inflationary expectations. This particular sentiment is becoming quite negative. While the majority of respondents think prices will increase at the same rate as before (63%), the share of those believing the price level will rise at a higher speed within the upcoming year shifted from 13% to 23%.

This downward trend might relate to recent political tensions, thus leading to instability and high levels of uncertainty in the country. In the beginning of April, the government reintroduced the controversial bill on the transparency of foreign influence, which was withdrawn last year after a wave of protests and severe criticism from the country’s Western, strategic partners. Reintroducing the bill has provoked infuriation and mass protests, especially after the bill was accepted during its first hearing on 15 April.

Tbilisi vs. the regions. While the CCI decreased throughout the country, it declined further still among the population in the regions. For Tbilisians, the decline was 1.2, while for those in the regions it reached 5.4 index points.

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.