BAKU, Azerbaijan, Feb.5
By Tamilla Mammadova – Trend:
Business Confidence Index (BCI) will increase by 32.1 points for 1Q2021 compared to 4Q2020 and will reach 3.4 in Georgia, Trend reports via the ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.
The expectation in the Georgian private sector will improve by 64.1 index points. As for business performance over the past three months, it will increase and will reach -29.2 points, indicating an upturn in production, turnover, and sales. Compared to the previous quarter, the Sales Price Expectation Index will increase significantly, showing growth in the market share of business owners who expect higher sales prices.
The BCI increased in most economic sectors, with the highest increase in construction (70.6), followed by service (55.3), financial (23), agriculture (11.6), and manufacturing (1.6) sectors. Compared to 4Q2020, BCI decreased in retail trade (-14.3).
Business confidence for the first quarter of 2021 will increase both for SMEs (6.1), and large firms (35).
The Businesses’ Past Performance Index, which shows the development of businesses' production, turnover, and sales in the past three months, will increase compared to 4Q2020 and will reach -29.2 for 1Q2021.
Significant improvement in performance will observe in the construction sector (88.4), followed by the service (32.5) and agriculture (16.4) sectors. A decrease in past performance will observe in retail trade (-51.6), manufacturing (-8.4), and financial (-7) sectors.
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