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Ukrainian business predicts a further increase in prices for goods and services. This follows from the Index of Expectations of Business Activity (IODA), which rose to 44.4 points in July compared to 43.6 in June, the press service of the National Bank of Ukraine (NBU) reports.
Enterprises of various industries expect price increases
According to the survey, enterprises of industry, trade and construction predict a strengthening of growth rates of both purchase prices and prices/tariffs for their own products and services. Respondents from the service sector, on the contrary, are determined for a slight slowdown in the growth of their own prices, despite the strengthening of expectations for the growth of purchase prices.
Business activity: negative assessments are softening
Despite the forecasted price increase, the business slightly softened the negative estimates of business activity. This is due to several key factors:
• Adaptability to energy supply problems. Many enterprises have learned to work effectively in conditions of unstable energy supply.
• Stable operation of the sea corridor. Ensuring smooth operation of logistics chains has a positive effect on business expectations.
• Stable inflationary expectations. Business adapts to stable levels of inflation, which allows more accurate forecasting of financial results.
• Seasonal factor. Certain industries experience seasonal improvements in working conditions.
• Easing of currency restrictions. Liberalization of the currency market creates more favorable conditions for enterprises.Challenges for business
At the same time, there are several factors that restrain business activity:
• Worsening of the security situation. The risk of new terrorist attacks against critical infrastructure and the long process of its restoration have a negative impact on the business climate.
• Worsening course expectations. The instability of the currency market adds to the uncertainty.
• Shortage of qualified personnel. According to the survey, the labor market remains difficult and finding qualified workers is becoming increasingly difficult.Against the background of these challenges, Ukrainian business demonstrates the ability to adapt to new realities and maintain optimism about the future, which is confirmed by the growth of the IODA. However, for stable development, it is necessary to solve current problems and find new ways to improve business conditions in the country.
