Business Association of Georgia publishes the results of the first quarter of the 2021 BAG index, prepared by the PMCG Research Center in collaboration with the Business Association of Georgia, based on a survey conducted in February.
According to the study, in the first quarter of 2021, compared to the previous quarter, the business climate index, which is a combination of the current state of business and expectations, improved significantly. During the mentioned period, the assessment of both the current situation and the expectations by the representatives of the Georgian Business Association member companies was improved. However, despite the improvement, the current situation remains negative. At the same time, the business maintains a positive expectation, which has significantly improved by 34 points. As a result, the business climate is still in the fourth quarter.
As part of the study, BAG member companies are divided into trade, services, industry, and construction.
In the first quarter of 2021, the BAG business climate rate is positive for all sectors except construction. This is due to the negative assessment of the current situation in the construction sector. The current situation is also assessed negatively by the trade and services sectors. However, it should be noted that in the first quarter of 2021, compared to the fourth quarter of 2020, the assessment of the current state of business improved in all sectors except the construction sector.
In the first quarter of 2021, business expectations for the next six months are positive for all sectors. During this period, a particularly optimistic mood was observed in the service and trade sectors, which should be linked to the gradual easing of restrictions imposed by the end of 2020.
The BAG index is based on the evaluation of the members of the Georgian Business Association and the companies in their group. Accordingly, the BAG index is an important indicator of assessing the business environment in Georgia, conducted by the Georgian Business Association and the PMCG Research Center based on the methodology of the German Institute for Economic Research IFO.
