Business performance down in Georgia
BAKU, Azerbaijan, Sept.15
By Tamilla Mammadova - Trend:
Expectations in the Georgian private sector have improved by 62.2 index points over the past three months, up to 20.8 percent, Trend reports referring to ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.
As for business performance over the past three months, it has decreased, reaching -40.6 points, indicating a significant downturn in production, turnover, and sales. Compared to the previous quarter, the Sales Price Expectation Index has also decreased, showing growth in the market share of business owners who expect lower sales prices.
The Business Confidence Index (BCI) increased in most economic sectors, with the highest improvement in construction (39.6), followed by financial (24.2), service (18.5), and retail trade (18.4). Compared to 2Q2020, BCI decreased in the manufacturing (-12.4) and agriculture (-8.3) sectors.
Business confidence in the third quarter of 2020 has increased both for SMEs (21.8), and large firms (15).
Businesses’ Past Performance Index, which shows the development of businesses' production, turnover, and sales in the past 3 months, decreased further by 14.4 points compared to 2Q2020 and reached its new historic low in September 2020.
A significant deterioration in performance was observed in the retail trade sector (-59.8), followed by the agriculture (-22), service (-17.5), and financial (-4.3) sectors.
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