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Because of the war last year, 83% of Ukrainian companies suffered a recession

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Only 6% of those surveyed reported no change, and another 11% could boast of an increase in income in a very difficult year.

83% of the member companies of the European Business Association experienced a decline in business in 2022. This was reported by the European Business Association.

The EBA press service states that before the full invasion, 83% of companies expected positive dynamics in the development of their business in 2022. The same share of companies is decreasing today.

“At the end of 2022, most companies report a decrease in their dollar revenue: 29% had a decrease of up to 20%, 54% had a decrease of 21% or more. Only 6% of respondents reported no change and another 11% could boast of income growth in a difficult year.

The anti-rating of current business challenges is dominated by power outages, communications and the Internet. In addition, companies are experiencing problems booking employees from mobilization and travel abroad.

The number of companies that experienced the impact of missile attacks on their activities almost doubled compared to October last year – from 47 to 89%.

“Russia’s urging leads to disruption of work processes, reduction in the number of productive hours, difficulty in planning, accumulation of employee fatigue, increased costs due to the use of generators and other negative consequences for companies’ operations,” the press service noted. the numbers.

As a result of the hostilities, 40% of the companies suffered direct losses, in addition, 25% had assets in the occupied territories.

“Preferably, it is equipment, machinery, real estate, transportation. Business losses remain high: 32% report losses up to $1 million, 36% – about losses in the range of $1- 10 million, 16% – regarding losses over $10 million”, said the EBA.

Despite the difficulties, today all 100 EBA companies that participated in the survey are operating, namely: 54% – fully, and 46% – with some restrictions. In October last year, 44% of companies were fully operational. Among businesses that are partially operational, 44% have limited their activities geographically, 23% have closed part of their offices / retail outlets / branches, and 14% have moved their activities online. At the same time, financial stability is improving: 27% of companies have financial reserves for six months, 23% for a year, and 36% for a year or more.

Recall that the Interdepartmental Working Group on the accelerated revision of state regulatory instruments of economic activity recommended that the Cabinet of Ministers remove a significant part of state regulatory instruments in areas controlled by Ministry of Economic Development of Ukraine. The proposals aim to make doing business easier.

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Source: korrespondent

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