Business Association of Georgia: Surveyed companies report improvement in current business standing for Q2 2026

The Business Association of Georgia (BAG) has published the second-quarter results of its BAG Index survey. According to the survey, the business climate indicator rose by 5.1 points quarter-on-quarter to reach 47.6 points. Notably, the surveyed companies’ assessment of their current standing improved by 11.4 points, whilst the expectations indicator increased by 10.1 points.

Across all sectors, the services industry recorded the highest business climate index, reflecting the most optimistic outlook for both current operations and future expectations.

“The business survey for the second quarter of 2026 highlighted two factors that equally hinder the operations of enterprises: a shortage of specialists and legal and administrative barriers. Crucially, the indicator for the latter factor rose by 6 percentage points compared to the previous quarter, whilst the shortage of specialists decreased by 3 percentage points. During this period, the issue of weak demand also intensified (by 11 percentage points), whereas the challenge posed by the instability of the Lari exchange rate eased significantly, dropping by 7 percentage points,” the Association stated.

As noted in the study, a sector-by-sector analysis reveals that the construction sector is the most severely affected by the shortage of specialists and labour. Meanwhile, legal and administrative barriers remain a significant challenge for the services and trade sectors.

“Ultimately, 57% of the surveyed companies identified active obstacles to their business operations during the current quarter. This figure represents a 2 percentage point decrease compared to the previous quarter,” according to the study prepared by the Business Association of Georgia.