83% of CEOs forecast growth of their business in 2022

21/ 09/ 2021

The results of the Business Forecast 2022, conducted by the European Business Association together with Nestlé Ukraine, show a steady increase in optimistic sentiments and forecasts of the top managers. For comparison, last year just 60% of the respondents predicted positive business results. View the results In 2022, the vast majority, namely 83% of the respondents, forecast growth of their business, 15% of the directors assume it will be possible to sustain their business performance at the level of 2021, and only 2% expect some deterioration in their business situation (14% last year). The companies have significantly improved the financial forecasts for next year. Most entrepreneurs, namely 67%, forecast income growth by 10-20% – in hryvnia. This figure returned to the level of 2020 after a significant decline in the past. Thus, 36% of directors expect revenue growth of up to 10% in volume terms, and almost half (49%) expect a 10-20% growth. The dollar exchange rate for next year is forecasted to be the same as last year. When planning budgets for 2022, company executives consider the currency rate at an average of 29 UAH/$. All respondents to this years survey note their plans to increase the salaries of their employees in 2022. Most managers, namely 55%, plan to increase salaries by 5-10%. Other 30% will increase salaries by 10-20%. It should be mentioned that last year 15% of the companies were not able to increase staff salaries. The companies are enthusiastic about the plans to create new jobs. Thus, last year 60% of companies did not plan any changes in their staff, while this year their number is only 36%. The majority, namely 58% of the top managers, plan to expand their staff. And only 6% of the companies will be forced to reduce staff. One-third of the entrepreneurs, namely 32%, plan to implement new investment projects next year with a budget from 20 thousand to 400 million US dollars. Moreover, we are pleased to note that almost half of the respondents (49%) plan to invest in social initiatives aimed at supporting Ukrainian society next year. In some cases, the amount of investment will reach 3% of the companys income. Anna Derevyanko. EBA Executive Director. Such optimistic forecasts of the directors are certainly very uplifting. Maybe, for the first time since the pandemic broke, we can talk about a significant improvement in the assessments and sentiments of the top managers regarding their own business plans. Let′s hope that next year will not bring unpleasant surprises to business, which may hinder the implementation of their ambitious plans. Alessandro Zanelli . CEO Nestle in Ukraine and Moldova. It is inspiring that many CEOs see the growth potential for business in Ukraine. Ukrainians are regaining their purchasing power, which is a good sign and developing trend. As Nestle, we support this positive trend and plan further investments into sustainability and regenerative food systems, modernization of our factories, product innovation, employee welfare, as well as initiatives important for Ukrainian society. The CEOs also identified the TOP-3 tasks from business to the government for next year. It’s been the second year in a row that the first need mentioned is the need for judicial reform and the rule of law, the second is the fight against corruption, and the third is the need to ensure political stability and effective management in the country. Also, this year, the directors highlighted the importance of further reforming the tax and customs sectors. Main Partner For reference: Altogether, 95 CEOs of the EBA member companies took part in the “Business forecast 2022” study. The survey consisted of 10 questions and was conducted in September 2021. The Business Forecast has been conducted by the Association for the 6th year in a row. This year, the study was held with Nestlé Ukraine – our research partner. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

The results of the Business Forecast 2022, conducted by the European Business Association together with Nestlé Ukraine, show a steady increase in optimistic sentiments and forecasts of the top managers. For comparison, last year just 60% of the respondents predicted positive business results.

View the results

In 2022, the vast majority, namely 83% of the respondents, forecast growth of their business, 15% of the directors assume it will be possible to sustain their business performance at the level of 2021, and only 2% expect some deterioration in their business situation (14% last year).

The companies have significantly improved the financial forecasts for next year. Most entrepreneurs, namely 67%, forecast income growth by 10-20% – in hryvnia. This figure returned to the level of 2020 after a significant decline in the past. Thus, 36% of directors expect revenue growth of up to 10% in volume terms, and almost half (49%) expect a 10-20% growth.

The dollar exchange rate for next year is forecasted to be the same as last year. When planning budgets for 2022, company executives consider the currency rate at an average of 29 UAH/$.

All respondents to this year’s survey note their plans to increase the salaries of their employees in 2022. Most managers, namely 55%, plan to increase salaries by 5-10%. Other 30% will increase salaries by 10-20%. It should be mentioned that last year 15% of the companies were not able to increase staff salaries.

The companies are enthusiastic about the plans to create new jobs. Thus, last year 60% of companies did not plan any changes in their staff, while this year their number is only 36%. The majority, namely 58% of the top managers, plan to expand their staff. And only 6% of the companies will be forced to reduce staff.

One-third of the entrepreneurs, namely 32%, plan to implement new investment projects next year with a budget from 20 thousand to 400 million US dollars. Moreover, we are pleased to note that almost half of the respondents (49%) plan to invest in social initiatives aimed at supporting Ukrainian society next year. In some cases, the amount of investment will reach 3% of the company’s income.

Anna Derevyanko EBA Executive Director

Such optimistic forecasts of the directors are certainly very uplifting. Maybe, for the first time since the pandemic broke, we can talk about a significant improvement in the assessments and sentiments of the top managers regarding their own business plans. Let′s hope that next year will not bring unpleasant surprises to business, which may hinder the implementation of their ambitious plans.

Alessandro Zanelli CEO Nestle in Ukraine and Moldova

It is inspiring that many CEOs see the growth potential for business in Ukraine. Ukrainians are regaining their purchasing power, which is a good sign and developing trend. As Nestle, we support this positive trend and plan further investments into sustainability and regenerative food systems, modernization of our factories, product innovation, employee welfare, as well as initiatives important for Ukrainian society.

The CEOs also identified the TOP-3 tasks from business to the government for next year. It’s been the second year in a row that the first need mentioned is the need for judicial reform and the rule of law, the second is the fight against corruption, and the third is the need to ensure political stability and effective management in the country. Also, this year, the directors highlighted the importance of further reforming the tax and customs sectors.

Main Partner

For reference:

Altogether, 95 CEOs of the EBA member companies took part in the “Business forecast 2022” study. The survey consisted of 10 questions and was conducted in September 2021. The Business Forecast has been conducted by the Association for the 6th year in a row. This year, the study was held with Nestlé Ukraine – our research partner.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.