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Expectations Index to decrease in Georgia - ISET-PI

Business Materials 6 November 2020 12:07 (UTC +04:00)
Expectations Index to decrease in Georgia - ISET-PI

BAKU, Azerbaijan, November 6

By Tamilla Mammadova – Trend:

The Expectations Index will decrease significantly by 62.5 index points for 4Q2020 and will stop at -41.7 in Georgia, Trend reports referring to ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.

Prospects for the next three months will deteriorate for every sector, except retail trade (30.6-point increase). The most significant decline will be observed in the construction (-182.6), followed by manufacturing (-86.6), service (-85.5), financial (-43.8), and agriculture (-8.6) sectors.

Business expectations will decrease for both, large firms (-65.1) and SMEs (-32.2).

The Sales Price Expectations Index will increase from -8.3 points (3Q2020) to 2.7 points for 4Q2020.

The index will increase in every sector, except service (1.9 points decrease) and agriculture (-12.5 points decrease). The overall Sales Price Expectations Index will increase for both SMEs and large companies.

A lack of demand and limited access to financing continues to be the most significant obstacles for both large companies and SMEs.

For 4Q2020 access to finances and lack of demand became more important for both types of firms, especially for large companies (in the last four quarters, on average, 34 percent of large companies mentioned access to finances as a limiting factor, while, 30 percent mentioned lack of demand), which, together with an increased share of "other" factors could reflect the post-COVID-19 situation that business sector is currently facing.

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