“BAG Index Results Confirm Positive Dynamics and Optimism in the Business Sector” - Soso Pkhakadze
12 Oct '26
The Business Association of Georgia (BAG), in collaboration with the PMC Research Center, has published the results of the BAG Index for the third quarter. According to the research, the business climate indicator in the country has reached an all-time maximum since 2019, standing at 48.4 points. Positive dynamics are also recorded in employment, remuneration, and investment plans, although the shortage of workforce and qualified personnel remains a challenge for the sector.
Soso Pkhakadze, President of the Business Association of Georgia, evaluated these results and current business environment trends. According to him:
“The BAG Index results for the third quarter clearly demonstrate the positive dynamics and optimism present in Georgia’s business sector. It is particularly welcoming that the business climate indicator has reached a historical maximum of 48.4 points since the inception of the BAG Index in the fourth quarter of 2019. In this regard, outstanding growth and positive sentiment were recorded in the construction and service sectors.”
It is noteworthy that positive trends persist in employment and compensation. Specifically, the employment barometer improved to 32.9 points, and 30% of surveyed companies plan to increase salaries in the fourth quarter. Furthermore, compared to the previous quarter, the proportion of companies pointing to factors hindering their business activity decreased by 7 percentage points.
Private sector investment activity also remains at a high level. 68% of companies plan to increase investments in 2026, which will primarily be directed toward equipment and digital technology development.
“This result clearly shows that Georgian business is not only maintaining stability but is moving to a new stage of development. Naturally, such a high business climate indicator creates a solid foundation for the further growth of the country’s economy, the creation of new jobs, and the enhancement of population well-being. Of course, alongside this positive backdrop, challenges persist. The survey conducted as part of this year's Q3 BAG Index research confirms once again that the shortage of labor and qualified personnel - especially in the construction sector - remains a serious challenge. However, such positive sentiment and growing investments in the private sector provide the resources for the private sector and the state to join forces in overcoming obstacles to further improve our country’s business environment,” stated Soso Pkhakadze, President of the Business Association of Georgia.