75% of CEOs expect positive developments in 2019
Kyiv, Ukraine – 75% of CEOs expect impressive development of their business next year. Almost half of the leaders (42%) expect to increase company revenue by around 10-20% in hryvnia terms. Forecasts of revenue growth in foreign currency were not so impressive, with 43% of the CEOs expecting foreign currency revenues to grow by up to 10%. Such data was received by the European Business Association as a result of its “Business Forecast 2019” and presented on EBA Global Outlook.
Last year, expectations were more optimistic. At that time, 86% of CEOs had hopes for positive change. We are now returning to 2017 levels of moderate optimism. The reasons are obvious. For a long time, business is talking about an effective fight against corruption, rule of law, judicial reform, and political stability. There are some slight shifts. But in reality major issues remain. Therefore, next year these tasks remain in business people’s top three priorities for the authorities. I hope that we will be heard better this time and reforms in these areas will be more tangible.
Business needs tax and customs reforms, effective public administration, progress in the implementation of the EU-Ukraine Association Agreement’s terms, and strengthening of energy security and energy efficiency.
What are the main conclusions of our survey? When planning a budget for next year, the CEOs considered a currency rate of 30 UAH / 1$ on average. For this year, the forecast was UAH 28 / 1$. In addition, large-scale investment business projects are not planned, and 61% of the CEOs confirmed this.
However, 58% of all respondents plan to expand their businesses. One third of entrepreneurs will continue operations unchanged. In turn, almost half of them expect to increase employee remuneration by 10 to 20%.
As a reminder, the EBA Investment Index results demonstrate that the following actions are needed to improve the investment climate for business, namely: launch of the Anti-corruption court, judicial reform, land market reform, reduction of tax pressure on the salary fund, deregulation of the economy, more communicating of positive changes and cases, making the state apparatus effective, which in some cases will mean reducing its size by even up to fivefold.
106 CEOs of EBA member companies took part in the survey “Business Forecast 2019”. The questionnaire consisted of 10 questions. The research has been conducted for the past three years.