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Expectations Index to increase significantly in Georgia - ISET-PI

Business Materials 6 February 2021 08:38 (UTC +04:00)
Expectations Index to increase significantly in Georgia - ISET-PI

BAKU, Azerbaijan, Feb.6

By Tamilla Mammadova – Trend:

The Expectations Index will increase significantly by 64.1 index points for 1Q2021 and reached 22.5 in Georgia, Trend reports via the ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.

Prospects for the next three months will improve for every sector, except retail trade (19.5-point decrease). The most significant increase will observe in the construction (111.5), followed by service (110), financial (47.6), manufacturing (39.9), and agriculture (5.5) sectors.

Business expectations will increase for both large firms (70.3) and SMEs (18.7).

The Sales Price Expectations Index increased significantly from 2.7 points (4Q2020) to 29.7 points for 1Q2021. The index increased in every sector, except construction (47.7 points decrease). The overall Sales Price Expectations Index has increased for both SMEs and large companies.

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

The present results may be overestimated, as the survey only covers businesses currently operating and not those that have already exited the market. Firms, which exited the market are, to some extent, more likely to demonstrate a negative outlook.

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