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4.3 Fixed investment
Ukraine needs to maintain capital investment at 35% of GDP for at least five years. The Ukraine Ministry of Economy believes that for Ukrainian Economy to enjoy a large increase, Ukraine needs to maintain capital investments at 35% of GDP for at least five years consecutively, said Minister of Economy Yuliya Svyridenko. She added that in terms of money, Ukraine requires approximately $70 to$80B every year. The ministry offers two solutions to achieve this goal: increasing lending by Ukrainian banks based on state guarantees and state guarantees from the G7 countries and the EU for investment in Ukraine. The goal is state guarantees in the amount of 0.2% of the GDP of each G7 country and the EU for five years, which is approximately $100B annually. According to Svyridenko, this is the main idea of the economic portion of the Marshall Plan for Ukraine.
4.4 Corp profit
Most Ukrainian entrepreneurs reported a significant income decrease due to the war. According to a Mastercard survey, 79% of respondents stated a decline in business volume. This reduction ranges from 50% to 99% for half of the entrepreneurs. However, every fifth entrepreneur managed to maintain (19%) or even increase (2%) business volumes compared to the pre-war period. Most Ukrainian entrepreneurs (61%) continue to work, and 91% of those who suspended their activities are ready to resume business in the future. Depending on the long-term situation in Ukraine, 41% of respondents predict a return to pre-war indicators within a year. However, 30% believe that it will take one to two years, and 23% expect to be able to fully recover in two to three years at the latest.
The business activity expectations index increased by 2 points in July.
Ukrainian business has somewhat improved the assessment of its economic activity prospects. The index of business activity expectations in July 2022 increased to 43.6 points against 41.3 in June, stated the National Bank of Ukraine. In general, survey participants have pessimistic assessments of economic results in the near term for all sectors of the economy. June respondents expected a decrease in the number of employees, the largest in the construction sector. Instead, trade and service enterprises have noted a slight increase in demand for personnel. The review notes that economic growth recovery in all sectors of the economy is being delayed by increased hostilities, disruption of production and logistics routes, destruction of assets and infrastructure, high energy prices, and reduced demand.
Over 1,000 enterprises are moving to the west of Ukraine. Currently, 661 companies have been relocated to safe regions in the west of Ukraine, and another 475 are looking for a location or a method of transportation, announced Deputy Minister of Economy Tetyana Berezhna. According to a new Digital Platform for Business Relocation,1,723 relocation applications from enterprises were registered on the platform. Out of all applicants, 661 enterprises have already relocated, and 458 are already working. Currently, 475 enterprises are in the process of moving. Moreover, while the applications were being considered, 578 enterprises declined to move because their regions had been liberated. The deputy minister reported that the top
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