The Center for Economic Research and Reform conducted a comprehensive survey aimed at assessing the state and future prospects of business development across various sectors of the economy, as it was disclosed by Kapital.
Survey findings findings reveal that there has been a notable increase in the overall business climate, indicating positive changes in both current assessments and expectations. In March, the composite business climate index rose by 4 points compared to February, reaching 60, signifying further growth in business activity. However, this figure was higher in March of the previous year, standing at 64 points.
The surge in the business climate can largely be attributed to positive trends observed in the agriculture and industry sectors. In agriculture, the business climate index witnessed a significant 20-point increase over the month, driven by improvements in current enterprise assessments, increased demand, and a rise in the number of employees. Similarly, in the industrial sector, the index rose by 2 points, fueled by improved forecasts regarding both current and future enterprise conditions.
However, the construction sector experienced a slight downturn in business valuations, with assessments decreasing by 4 points, while the services sector saw a 3-point decline. Challenges in the construction sector were primarily related to deteriorating current conditions and reduced demand, while concerns in the services sector centered around high taxes and financing issues.
Despite these challenges, optimism among entrepreneurs regarding future business prospects remains high. The overall indicator for expectations regarding business prospects for the next three months reached 77 points, largely driven by increased optimism in agriculture and industry. This positive trend between assessments of the current state and future expectations indicates sustained economic growth in the coming months.
However, approximately half of the surveyed entrepreneurs reported encountering obstacles in conducting business operations. These challenges varied across sectors, with financing, high interest rates, and tax administration emerging as common concerns among entrepreneurs.
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