75% of CEOs expect positive business growth in 2019
An EBA survey shows that 75% of member companies’ CEOs expect business development during the next year. Almost half of businessmen (42%) expect 10 to 20% revenue growth, in UAH terms. Prognoses in $ are less optimistic. 43% of CEOs mentioned they expect up to 10% growth. Such results were shown by the survey “Business Forecasts 2019” and announced during the special event of the European Business Association “Global Outlook”.
Last year expectations of CEOs were more optimistic. Then 86% of CEOs hoped for positive scenario. Now we are returning to the numbers as of 2017. And the reasons for it are obvious. Business suffers from corruption and feels a real need for fight against it, as well as the need for establishment of the rule of law and judicial reform, political stability. There is a little progress, but they are not enough. Thus for the next year top tasks from business remain the same
Besides, business feels the need for 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 the following year, the business owners considered 30 UAH / 1$ on the 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, despite currency fluctuations, 58% of all respondents plan to expand the state. 33% of entrepreneurs will leave the state unchanged. In turn, almost half of them expect to increase employee benefits by 10 to 20%.
As a reminder, EBA Investment Index results demonstrate that the following actions are needed to improve the investment climate for the 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 positive changes and cases, making the state apparatus effective, which in some cases will mean its reduction. According to some respondents, even up to 5 times.
106 CEOs of the EBA member companies took part in the survey «Business Forecast 2019». The questionnaire consisted of 10 questions. The research is conducted for 3 years in a row.