The business climate in Georgia worsens in the first quarter of 2026 compared to the previous quarter, the Business Association of Georgia (BAG) reports.
Despite the decline, the indicator remains in a “boom phase,” meaning companies still assess their current situation and expectations positively.
The BAG Index, based on a survey of member companies conducted between March 4-17, shows the overall business climate fell by 2.5 points compared to the fourth quarter of 2025.
Business expectations for the next six months dropped by 4.2 points, while assessments of the current situation decreased by 1.1 points.
The indicator declined across all sectors except industry.
The sharpest drop was recorded in construction, followed by services and trade. In contrast, the industrial sector saw an improvement in current conditions.
Compared to the same period last year, however, the business climate improved. The index rose by 10.5 points year-on-year, driven by stronger assessments of both current conditions and future expectations.
Overall, companies still view both their present situation and near-term outlook positively, with the total business climate index standing at 42.5 points.
