Ukrainian businesses in the third quarter worsened expectations of inflation over the next 12 months to 25.2% from 21.7% in the previous quarter and worsened expectations of hryvnia devaluation to 41.93 UAH/$1 from 36.06 UAH/$1.
According to the results of the regular quarterly survey of business expectations of enterprises in the country, released on the NBU website on Monday, the business expectations index (BIE) of enterprises rose to 79.5 percent from 72.6 percent in the previous quarter, indicating a softening of negative economic sentiment.
The central bank explained that the increase was due to improved estimates for all components of the index, most notably for total sales of own-produced goods.
It is noted that companies expect a slowdown of decline in production of goods and services in Ukraine in the next 12 months: the balance of responses is “minus” 37.9% in the third quarter compared to “minus” 48.7% in the second quarter of 2022.
The majority of companies (52.4%) expect their financial and economic situation to remain unchanged in the next 12 months, 31.3% expect it to deteriorate and 16.2% expect it to improve.
According to the report, 31.7% of respondents expect a reduction in sales volumes (compared to 43% in the second quarter), including in foreign markets, while 44.4% expect the volumes to remain unchanged.
According to the survey, 32.9% of enterprises intend to reduce the number of employees, 59.7% – leave the staff unchanged.
Reduced expectations of companies to increase salaries of workers in the next 12 months: 41.4% of respondents plan to increase wages, 50.8% – to keep at current levels, 7.9% – to reduce.
The percentage of companies that plan to attract foreign investment fell to 22.2% from 24.1%, according to the survey.
Loans in local currency are planned to attract 86.3% of companies, while in the previous quarter this proportion was 84.6%.
A total of 642 companies from 21 regions participated in the survey of business expectations, which was conducted between 1st and 31st of August 2022. Among those surveyed, 18.2% were companies in the processing industry, 21.2% in wholesale and retail trade, 14.6% in agriculture, 13.2% in transport and communications, 6.4% in mining, 5.1% in electricity and water supply, 3% in construction and 18.2% in other sectors.
The EDI is an aggregate indicator regarding the expected development of enterprises in the next 12 months. Calculated based on the results of surveys of enterprises as an arithmetic means of the balances of responses regarding the financial and economic situation of enterprises, total sales of own production, investment spending on construction works, investment spending on machinery, equipment and inventory, and the number of employees.
An index value of more than 100 indicates an advantage of positive economic sentiment in society, below 100 – negative economic sentiment.
Ukraine in January-September 2022 reduced imports of nickel and products from it by 44.4% compared to January-September 2021 – to $49.3 million (in September – $4.664 million), aluminum and products from it – by 30, 8%, to $239.539 million ($32.357 million). At the same time, it reduced the import of lead and products from it by 65.1% – to $2.395 million ($146 thousand). Imports of tin and products from it fell by 8% – to $2.789 million ($322 thousand), and imports of zinc and zinc products also decreased – by 58.5%, to $28.225 million ($2.090 million).
Exports of aluminum and products from it for the first nine months of 2022 decreased by 36.4% compared to January-September 2021 – to $75.861 million (in September – $9.406 million), lead and products from it by 67.2% – to $9.370 million ($0.684 million), nickel and products – by 69.2%, to $1.079 million ($0.141 million).
The mission of the International Monetary Fund (IMF), the positive conclusions of which will mark the beginning of work on a new program, has started work on Ukraine in Vienna on October 17, the press service of the National Bank of Ukraine (NBU) said on Monday.
“We are committed to active work with the Fund’s experts. We hope for fruitful results of the mission and the definition of parameters for starting work on a new monitoring program with the involvement of the IMF Board, which will become the basis for a full-fledged program with the Fund,” the press service quoted NBU Governor Andriy Pyshny as saying.
It also said that representatives of the NBU, led by Pyshny, will take part in working meetings with mission experts, during which the current condition of the Ukrainian economy, macro-forecasts and parameters of the national budget for 2023 and sources of covering its deficit will be considered.
Florian Bollen, the new manager of the Tarantino Family restaurant chain, announced his intention to invest in the reconstruction of the Zhytniy Rynok (Zhytniy Market).
A new tenant is working on a reconstruction project in cooperation with Kyiv City State Administration and Zhytniy Rynok municipal enterprise, he said in an interview with Focus.
“The general idea is to make a comfortable public space with a place for Ukrainian producers and farmers, with platforms for public and social initiatives, with quality food at the food court, with comfortable places for trade. A craft brewery will be a highlight. Also in the plans are a cheese factory, a bakery, a children’s zone,” Bollen said.
According to him, reconstruction work can begin next year. At the same time, the businessman did not name the amount of planned investments.
“It is difficult to predict the final estimate amid war. The exchange rate is unstable, the logistics of construction materials is complicated. But I would like to start construction work next year. German Kraft Beer has a good reputation in the financial environment, we have the opportunity to receive affordable loans from European banks,” he emphasized.
Bollen explained that the building is on a long-term lease based on the results of tenders held by Kyiv City State Administration through the ProZorro e-procurement system.
As reported, the Tarantino Family restaurant chain in October 2022 came under the control of Florian Bollen, a German businessman and co-owner of German Kraft Beer craft breweries.
INVEST, KYIV, RECONSTRUCTION, RESTAURANT, Tarantino Family, Zhytniy Rynok
The Ministry for the Reintegration of Temporarily Occupied Territories reported that 6,570 places of compact residence for IDPs have been equipped in Ukraine at present.
“In Ukraine, 6,570 places of compact residence for IDPs (internally displaced persons) have been equipped, and the state continues to increase their number. It is easier for the authorities to provide educational, medical and other services for those living in them. The organization of work with our migrants is entrusted to local and regional authorities, however, in close cooperation with the central ones,” the press service of the ministry said in a statement.
It is noted that for people who were forced to move, modular cities were deployed in five regions, 25 of these towns were built by the Polish government.
“Of course, this is not enough, and therefore, negotiations are now underway with international donors and governments of other countries on the possible attraction of investments. On behalf of the President of Ukraine, a project is being developed to build such housing in the regions. investors, and this should be done before spring,” the message says.
Over the past two weeks on October 3-17, 4.05 thousand transactions were concluded in Ukraine with agricultural land plots with a total area of 7.33 thousand hectares, which is 2.9 times and 2.6 times, respectively, higher than the figures for the previous period September 19-October 3.
As reported on the website of the Ministry of Agrarian Policy and Food on Monday, in general, for the period from July 1, 2021 to October 17, 2022, during which the agricultural land market operates in the country, 126.21 thousand transactions took place on land plots with a total area of 289, 31 thousand hectares.
According to the agency, for the period October 3-17, an average of 289 transactions with agricultural land with a total area of 0.52 thousand hectares / day were concluded daily, while for two weeks September 19 – October 3, the daily indicators of the land market averaged 93 transactions per total area of 0.17 thousand ha/day, for the week of September 12-19 – 210 transactions with a total area of 0.4 thousand ha/day, for the week of August 22-29 – 164 transactions for 0.28 thousand ha/day, and for August 15-22 – 198 transactions on 0.69 thousand hectares.
This figure is still significantly lower than before the Russian invasion: according to the latest pre-war data from the Ministry of Agrarian Policy, during the period February 11-18, an average of 621 land transactions with a total area of 1.65 thousand hectares were concluded in Ukraine daily.
In terms of the total area of sold agricultural land plots, the Kharkiv region is in the lead with an indicator of 38.2 thousand hectares. It is followed by Dnepropetrovsk – 25.4 thousand hectares, Poltava – 23.3 thousand hectares, Kirovograd – 23.1 thousand hectares and Kherson – 21 thousand hectares of the region.
According to the Ministry of Agrarian Policy, since the beginning of the full-scale Russian invasion in Ukraine, 25.24 thousand transactions have been concluded with agricultural land with a total area of 44.78 thousand hectares. Most land plots sold during the war were in Khmelnitsky (4.92 thousand hectares), Poltava (4.89 thousand hectares), Vinnitsa (4.87 thousand hectares), Kirovograd (4.71 thousand hectares) and Dnipropetrovsk regions (4.08 thousand ha).
It is specified that over the past two weeks, the average price of 1 ha of agricultural land has not changed compared to the previous two-week reporting period and remained at the level of UAH 37.21 thousand / ha.
As reported, the agricultural land market, launched in Ukraine as part of the government’s land reform, began operating on July 1, 2021. At the first stage of the reform, only citizens of the country will be able to buy and sell land. One individual can have at his disposal no more than 100 hectares.
The right to acquire agricultural land on January 1, 2024 will be given to legal entities established in accordance with the legislation of Ukraine, while the final beneficiary of one or several legal entities will be able to consolidate through them a total of no more than 10 thousand hectares.
