Business climate indicators were measured in Georgia

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Read: 499     14:00     21 Декабрь 2021    

The indicator of the business climate in Georgia is approaching the level that existed before the coronavirus pandemic, that is, in 2019. This is stated in the study of the Business Association of Georgia (BAG) for the fourth 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 stations and pharmacies, construction, and communication companies, as well as large supermarket chains.
According to the BUG index for the fourth quarter of 2021, the positive trend that emerged in previous quarters remains - the surveyed companies still positively assess their current situation and expectations for the next six months.
In the study, the BUG member companies are divided into four sectors: trade, services, industry and construction.
During 2021, the business climate in trade, industry and services is positive in all four quarters. The situation was different in the construction sector, where the business climate index was negative in the first half of 2021, although the indicator is positive in the second half of the year and is improving compared to the corresponding period of 2020.
Employment in production
The number of employees hired is growing compared to the third quarter, as stated by 21.3% of the surveyed companies. Only 3.7% of companies confirm the reduction of staff.
At the same time, most companies state that the number of employees they have hired has not changed.
In addition, 25% of the surveyed companies believe that they will increase the number of employees in the first quarter of 2022. Only 3.7% of companies are expected to reduce staff at the beginning of next year.
The most positive expectations in terms of employment are observed in the construction sector: half of the surveyed construction companies plan to increase the number of employees, as they expect sales growth.
Five reasons hindering business in Georgia:
The number of companies that believe that there are factors hindering their activities decreased significantly in the fourth quarter.
The reasons that were often indicated during the survey as "interfering with business":
- instability of the national currency
- legal and administrative barriers
- lack of specialists
- labor shortage
- low demand for products or services.

It is noted that in the third and fourth quarters, limited financial resources are no longer a hindrance for entrepreneurs.
In the fourth quarter of this year, 45% of the surveyed companies (7% less than in the third quarter) tried to find financing. Some of them stated that access to finance in Georgia is a problem.
In addition, most of the companies stated that they are financed from local sources.

National currency

In the fourth quarter of 2021, compared to the third quarter, the share of companies expecting a decrease in the lari to the dollar in the next six months decreased by 8%.
As a result, 47% of companies expect the depreciation of the national currency, and only 11% expect it to strengthen. Another 42% of companies do not expect a change in the lari exchange rate in the next six months.
Currently, the exchange rate of lari fluctuates at the level of 3.08 lari per dollar. To stabilize the foreign exchange market, in 2020, the National Bank held 26 auctions, at which it sold a total of 873.2 million dollars. This year, the regulator has already sold $ 332.9 million at nine auctions. The lowest exchange rate of the lari was recorded on March 27, 2020, when the national currency fell to the level of 3.4842 lari per dollar.

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Business climate indicators were measured in Georgia

2021/12/51230-1640076421.jpg
Read: 500     14:00     21 Декабрь 2021    

The indicator of the business climate in Georgia is approaching the level that existed before the coronavirus pandemic, that is, in 2019. This is stated in the study of the Business Association of Georgia (BAG) for the fourth 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 stations and pharmacies, construction, and communication companies, as well as large supermarket chains.
According to the BUG index for the fourth quarter of 2021, the positive trend that emerged in previous quarters remains - the surveyed companies still positively assess their current situation and expectations for the next six months.
In the study, the BUG member companies are divided into four sectors: trade, services, industry and construction.
During 2021, the business climate in trade, industry and services is positive in all four quarters. The situation was different in the construction sector, where the business climate index was negative in the first half of 2021, although the indicator is positive in the second half of the year and is improving compared to the corresponding period of 2020.
Employment in production
The number of employees hired is growing compared to the third quarter, as stated by 21.3% of the surveyed companies. Only 3.7% of companies confirm the reduction of staff.
At the same time, most companies state that the number of employees they have hired has not changed.
In addition, 25% of the surveyed companies believe that they will increase the number of employees in the first quarter of 2022. Only 3.7% of companies are expected to reduce staff at the beginning of next year.
The most positive expectations in terms of employment are observed in the construction sector: half of the surveyed construction companies plan to increase the number of employees, as they expect sales growth.
Five reasons hindering business in Georgia:
The number of companies that believe that there are factors hindering their activities decreased significantly in the fourth quarter.
The reasons that were often indicated during the survey as "interfering with business":
- instability of the national currency
- legal and administrative barriers
- lack of specialists
- labor shortage
- low demand for products or services.

It is noted that in the third and fourth quarters, limited financial resources are no longer a hindrance for entrepreneurs.
In the fourth quarter of this year, 45% of the surveyed companies (7% less than in the third quarter) tried to find financing. Some of them stated that access to finance in Georgia is a problem.
In addition, most of the companies stated that they are financed from local sources.

National currency

In the fourth quarter of 2021, compared to the third quarter, the share of companies expecting a decrease in the lari to the dollar in the next six months decreased by 8%.
As a result, 47% of companies expect the depreciation of the national currency, and only 11% expect it to strengthen. Another 42% of companies do not expect a change in the lari exchange rate in the next six months.
Currently, the exchange rate of lari fluctuates at the level of 3.08 lari per dollar. To stabilize the foreign exchange market, in 2020, the National Bank held 26 auctions, at which it sold a total of 873.2 million dollars. This year, the regulator has already sold $ 332.9 million at nine auctions. The lowest exchange rate of the lari was recorded on March 27, 2020, when the national currency fell to the level of 3.4842 lari per dollar.

newsgeorgia.ge





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