Business has adapted to the pandemic – Georgian entrepreneurs are optimistic, despite the still existing problems.
Along with the growth of the economy, the business climate in Georgia is also improving, according to a study by the Business Association of Georgia (BAG) for the third quarter of 2021.
The Business Association of Georgia was founded in 2009 and unites more than 70 leading companies of the country, including banks, gas station chains, pharmacy chains, construction companies, communications companies, as well as large supermarket chains.
According to the BUG Index for the third quarter of 2021, the surveyed companies positively assessed their current situation and expectations for the next six months.
At the same time, against the background of the deterioration of the epidemiological situation in the country, the business mood has only slightly subsided and remains noticeably positive. This assessment shows that despite a slight slowdown in economic activity and the possible negative consequences of the next wave of the pandemic, business expects a rapid economic recovery.
The positive dynamics that began in the previous quarters because of the lifting of restrictions continues in the third quarter. The company notes that the results of the third quarter of 2021 have significantly improved compared to the same period last year, due to the adaptation of business to the circumstances created by the pandemic and the recovery of the economy.
According to the study, the business environment no longer expects a sharp deterioration, which means that, unlike last year, the negative impact of the pandemic has decreased.
In the study, the BAG member companies are divided into four sectors: trade, services, industry and construction.
In the third quarter of this year, compared to the second quarter, the business climate indicator is positive for all sectors, except for industrial. Despite the deterioration, the surveyed companies working in this industry assess the current situation positively.
As for the construction sector, despite the improvement in the indicator, companies are pessimistic.
The entrepreneurs gave the most positive assessment to the trade sector. According to the BUG, 43.2% of the surveyed companies increased sales.

Employment of the population

According to the BUG study, 23.6% of the surveyed companies say that the number of employees they have hired has increased, only 4.7% say that the staff has been reduced.
Most companies say that the number of employees has not changed, and they do not expect changes in the fourth quarter either.

What hinders business in Georgia

Instability of the lari exchange rate, legal and administrative barriers, lack of demand for goods and services, lack of specialists are the most negative factors affecting business, according to 75% of the surveyed entrepreneurs.
In the third quarter, unlike the previous ones, this list did not include limited financial resources.Among the problems in the current quarter, the first place is still occupied by the instability of the national currency – 68% of respondents call this factor a hindrance.

Sputnik-georgia.ru