47% of Ukrainians perceive corruption as the biggest obstacle to the development of entrepreneurship in the country, according to a survey conducted by the Ilko Kucheriv Democratic Initiatives Foundation in cooperation with the Kyiv International Institute of Sociology on July 3-17, 2023.
“According to the survey conducted in July 2023, corruption is perceived by citizens as the biggest obstacle to the development of entrepreneurship in the country. This was noted by 47% of respondents. For comparison: 37% named the destruction caused by the war as the biggest obstacle, 36% – inadequate tax administration and control system, 36% – weak support from the state,” the report on the results of the study published on Monday on the official website of the Fund says.
As noted, “problems that directly depend on the quality of public administration occupy three of the top four positions that, according to Ukrainians, hinder the development of entrepreneurship. At the same time, the next most negative impact on entrepreneurship is the outflow of specialists and entrepreneurs abroad (29%) and the outflow of employees abroad (28%).”
Sociologists have recorded that corruption as an obstacle to entrepreneurship was mentioned somewhat more often in the East (55%) and less often in the West (43%) of the country. Similarly, critical attitudes toward tax control are noticeably increasing from the West (30%) to the East (43%). Respondents in the eastern (40%) and southern regions (33%) mentioned the outflow of specialists and entrepreneurs abroad more often than in the western (22%) and central regions (27%), which were less affected by the hostilities. The same situation is with the outflow of workers: it was mentioned more often in the east (37%) and south (31%) than in the west (25%) and center (24%).
“It is significant,” the report says, “that there is a distrust in society of domestic agents of post-war economic and infrastructure recovery. In particular, in July 2023, only 17.5% of respondents agreed with the opinion that state-owned Ukrainian companies and banks could effectively and without corruption carry out the country’s post-war recovery. The level of trust in Ukrainian private companies and banks is even lower – 8%.
Currently, large Western companies and banks (28%) and international financial organizations such as the IMF and the World Bank (19%) have the highest, but also low, levels of trust. Large non-Western companies and banks (China, UAE, Saudi Arabia) have the lowest level of trust – only 3% of respondents.
The survey was conducted face-to-face in all regions of Ukraine, except for the Autonomous Republic of Crimea, Donetsk, Luhansk, and Kherson regions. In Zaporizhzhia and Kharkiv regions, the survey was conducted in the territories controlled by the Government of Ukraine and not subject to hostilities. 2011 respondents aged 18 and older were interviewed.
Deputy Foreign Minister of Ukraine Yevhen Perebyinis has accepted copies of his credentials from the new Ambassador of His Majesty the King of the United Kingdom of Great Britain and Northern Ireland to Ukraine, Martin Harris.
According to the press service of the Ministry of Foreign Affairs of Ukraine, Perebyinis congratulated the Ambassador on the beginning of his diplomatic mission in Ukraine, expressing hope that his work in our country will contribute to further deepening of Ukrainian-British relations.
“The interlocutors discussed the full range of issues of cooperation between Ukraine and the United Kingdom, exchanged views on concrete steps to deepen cooperation in the context of Ukraine’s course towards NATO membership, as well as the implementation of international initiatives to support Ukraine,” the statement said.
The parties paid special attention to the issue of strengthening sanctions pressure on Russia and the functioning of the Black Sea “grain corridor” to ensure global food security.
The Deputy Minister thanked the UK for supporting Ukraine and strengthening the country’s defense capabilities.
Earlier, the British government announced that Martin Harris will become the British Ambassador to Ukraine, replacing Melinda Simmons, and the rotation will take place in September 2023.
Martin Harris already worked in Kyiv in 2003-2008 and held the position of Deputy Ambassador and Consul General.
Melinda Simmons has been head of the British diplomatic mission in Ukraine since 2019. She will continue to work in the diplomatic service in another position.
The European Commission (EC) has downgraded its forecast for eurozone economic growth in 2023 to 0.8% from the previously expected 1.1%.
In 2024, eurozone GDP is expected to grow by 1.3% rather than 1.6%, the EC said in a review.
The forecast for EU economic growth for this year has been worsened to 0.8% from 1% and for next year to 1.4% from 1.7%.
“The latest statistical data confirm that economic activity in the EU has been subdued in the first half of 2023 due to the severe shocks facing countries in the region. Weakness in domestic demand, especially consumer spending, shows that high prices for most goods and services are putting more pressure on the economy than we believed in our previous forecast,” the survey said.
“The sharp contraction in bank lending suggests that monetary tightening in the euro area is having an impact on the economy,” the EC said. – Various surveys point to a slowdown in economic activity over the summer and the following months. Weakness in the industrial sector persists, and the impetus for growth in the services sector is weakening”.
EC experts emphasize that the situation in the world economy in the first half of the year was slightly better than expected, despite the weak dynamics in China. Nevertheless, the EC forecasts for the world economy and international trade volumes are practically unchanged, which means that European countries cannot count on support from external demand.
The EC expects global GDP to expand by 3.2% both this year and next year.
“The momentum towards slower growth in the EU is likely to continue into 2024, as tight monetary policy will continue to constrain economic activity. At the same time, we expect GDP growth to pick up slightly next year as inflation slows, the European labor market remains strong and household incomes gradually recover,” the EC review said.
The eurozone inflation forecast (HICP index) for this year has been lowered to 5.6% from 5.8%, for next year – raised to 2.9% from 2.8%. In the EU, according to the EC’s updated forecast, inflation will be 6.5% this year (previously 6.7%) and 3.2% next year (previously 3.1%).
The EC expects that energy prices in Europe will continue to decline until the end of 2023, but more slowly than before. At the same time in 2024 they may again slightly increase due to the expected rise in oil prices.
The EC review notes that the war in Ukraine and other geopolitical factors still carry risks for Europe.
In addition, experts warn that the tightening of monetary policy may put more pressure on the economy than expected at the moment. On the other hand, it may lead to a faster easing of inflation and, accordingly, accelerate the recovery of real incomes, the review notes.
According to the EC’s forecast, Germany’s GDP will contract by 0.4% in 2023 and grow by 1.1% next year. Previously expected to increase the first indicator by 0.2%, the second – by 1.4%.
France’s economic growth forecast for 2023 has been raised to 1% from 0.7%, for the next year it has been lowered to 1.2% from 1.4%.
Italy’s economy is expected to grow by 0.9% and 0.8% in 2023 and 2024 respectively, while Spain’s is expected to grow by 2.2% and 1.9%.
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In January-August this year, Ukraine increased exports of pig iron in physical terms by 6.4% year-on-year to 934.196 thousand tons.
According to statistics released by the State Customs Service (SCS), pig iron exports in monetary terms amounted to $356.293 million in the period under review (down 25.1%).
At the same time, exports were carried out mainly to Poland (63.07% of supplies in monetary terms), Spain (20.66%) and the Czech Republic (7.05%).
In the first eight months of 2023, Ukraine imported 65 tons of pig iron worth $97 thousand from Germany (32.99%) and Brazil (67.01%), while no imports of pig iron were made in June and July.
As reported, in 2022, Ukraine reduced pig iron exports in physical terms by 59% compared to the previous year to 1 million 325.275 thousand tons, and in monetary terms by 61.1% to $638.774 million.
In 2022, Ukraine imported 40 tons of pig iron worth $23 thousand, while in 2021 it imported 185 tons of pig iron worth $226 thousand.
Exports were made mainly to the United States (38.47% of supplies in monetary terms), Poland (32.91%), and Turkey (8.12%), while imports were made from Germany (100%).
On behalf of the government, the German defense concern Rheinmetall AG will supply Ukraine with another 40 Marder infantry fighting vehicles, the company’s press service reports.
“The German government has instructed Rheinmetall to supply 40 Marder infantry fighting vehicles to Ukraine. The order was placed in August 2023 and is valued at a double-digit amount. Rheinmetall is continuing to work on the existing vehicles in full swing so that a new batch of Marder vehicles can be delivered in accordance with the contract starting in 2023,” the company said in a statement on its website.
It is noted that the total number of Marder infantry fighting vehicles that Rheinmetall will supply to Ukraine will reach 80.
The company reminds that the first 20 infantry fighting vehicles ordered by the German government for Ukraine were launched on March 21, 2023. In June 2023, another 20 BMPs were ordered and recently delivered.
“The delivered infantry fighting vehicles are overhauled Marder 1A3s, which Rheinmetall has previously adopted for the Bundeswehr (German Armed Forces – IF-U). Already in the spring of 2022, Rheinmetall began repairing infantry fighting vehicles at its own expense to make them ready for immediate deployment,” the statement said.
The Marder infantry fighting vehicles are currently being built at Rheinmetall’s plants in Unterluss and Kassel. Up to ten of these vehicles can be delivered per month.
It is noted that this combat vehicle is one of the most proven weapons systems of its kind in the world.
In January-August this year, Ukrainian companies increased imports of copper and copper products by 85.1% year-on-year to $77.287 million.
According to customs statistics released by the State Customs Service of Ukraine, exports of copper and copper products decreased by 21.7% to $50.197 million over the period.
In August, copper was imported for $9.975 million and exported for $6.273 million.
In addition, in the first eight months of 2023, Ukraine reduced imports of nickel and products by 75.3% compared to the same period in 2022 to $11.038 million ($2.599 million in August), while imports of aluminum and aluminum products increased by 17.8% to $243.990 million ($38.614 million).
At the same time, it reduced imports of lead and lead products by 67.9% to $722 thousand ($9 thousand), imports of tin and tin products by 33.8% to $1.633 million ($208 thousand), but increased imports of zinc and zinc products by 10.1% to $28.775 million ($3.934 million).
Exports of aluminum and aluminum products in January-August this year decreased by 4.8% compared to the same period last year to $63.289 million ($8.201 million in August), lead and lead products increased by 13.6% to $9.866 million ($0.876 million), nickel and nickel products amounted to $201 thousand ($76 thousand), while in 8 months. 2022 it was $1.339 million.
Zinc was exported abroad for eight months by $88 thousand (in August – $2 thousand) against $1.302 million in January-August 2022. Exports of tin and products amounted to $53 thousand (in August – $1 thousand) against $396 thousand in 8 months of 2022.
As reported, in 2022, Ukrainian enterprises reduced imports of copper and copper products in value terms by 64.3% compared to the previous year – to $65.370 million, while their exports decreased by 56.3% to $90.245 million.
In addition, in 2022, Ukraine reduced imports of nickel and nickel products by 49.9% compared to 2021, to $59.754 million, and aluminum and aluminum products by 33.4%, to $340.398 million. At the same time, it reduced imports of lead and lead products by 66.6%, to $2.839 million.
Imports of tin and tin products fell by 33.5% to $3.312 million, and imports of zinc and zinc products decreased by 58.7% to $38.690 million.
In 2022, exports of aluminum and aluminum products decreased by 42.7% compared to 2021, to $96.972 million, lead and lead products – by 68.7%, to $11.970 million, and nickel and nickel products – by 73.9%, to $1.268 million.
Zinc exports in 2022 amounted to $1.331 million, while in 2021 they amounted to $550 thousand. Exports of tin and products in 2022 amounted to $424 thousand, compared to $346 thousand in the previous year.
