BAG Index: Business Climate Indicator at its Highest Level Since 2019

12 Oct '26

The Business Association of Georgia (BAG) is publishing the results of the BAG Index for the third quarter. According to the survey the business climate indicator has reached a historical maximum since 2019, amounting to 48.4 points.

Among sectors, the highest business climate indicator was recorded in the construction and services sectors, where the current state of business was also evaluated most positively.

The surveyed companies also have positive expectations regarding employment. The employment barometer stood at 32.9 points, which is an improved indicator compared to the previous quarter. Also noteworthy are companies' plans regarding employee remuneration; specifically, 30% of respondents project wage increases in the fourth quarter.

In the third quarter of 2026, the main challenges for business remain the lack of specialists and legal and administrative barriers. Notably, compared to the previous quarter, the problem of labor shortages worsened by 6 percentage points.

It is noteworthy that by sectors, all three of the aforementioned factors pose the greatest problem for the construction sector.

Additionally, 50% of surveyed companies mentioned factors hindering business activity in the third quarter. This indicator has decreased by 7 percentage points compared to the previous quarter.

Within the framework of the research, similarly to the first quarter, companies' investment plans for 2026 were also evaluated in the reporting quarter. 68% of respondents plan to increase the total volume of investments in 2026, which will mostly be directed toward purchasing equipment and software/databases.

For information, the BAG Index is based on the assessments of Business Association of Georgia members and companies within their group, produced by the Business Association of Georgia and the PMC Research Center based on the methodology of the ifo Institute for Economic Research.

The full research report can be viewed at the link