The Institute for Economic Research and Policy Consulting (IER) has released the 20-th monthly enterprise survey “Ukrainian business in wartime” for December 2023.
The goal of the project is to quickly collect information on the current state of the economy at the enterprise level.
The field stage of the 20-th wave lasted from December 13 to December 31, 2023. The enterprise managers compared the work results in December 2023 with November, assessed the indicators at the time of the survey (December 2023), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
In December, 535 companies were surveyed.
Main results of the 20-th monthly enterprise survey:
- In December 2023, Ukrainian business considered danger the most acute problem, but entrepreneurs continued to adapt to work in war conditions.
- Despite the deteriorating security situation and high uncertainty affecting long-term plans, businesses are showing resilience by focusing on finding solutions for the present and the near future.
- Business activity recovery index remains high for two months in a row. Production indicators improved in December compared to November.
- Production expectations in the short term are positive but have not been growing for several months.
- Long-term expectations worsened for the first time, although the percentage of “optimists” still outweighs “pessimists.”
- Half-yearly expectations regarding the business activity at the enterprise and the overall economic environment have not changed compared to November, but the annual trend towards a gradual deterioration of the values is recorded.
- Employment indicators continued their seasonally slowing trend, while the labor market experienced a shortage of both unskilled and skilled workers.
- In December, the list of obstacles changed significantly; security issues and “labor shortages” ranked 1st and 2nd, with price increases obtained 3rd place.
- Negative assessments of the government’s economic policy decreased, and the percentage of neutral ones increased.