Page 25 - UKRRptAug23

to production and logistics chains, improvement of inflation and exchange rate expectations, and revitalization of domestic demand all contributed to the positive expectations of the respondents," the bank report says. In June 2023, the BAEI remained above the neutral level with 50 points, rising to 50.8 compared to 50.5 in May. Construction enterprises gave the most optimistic estimates of the results of their activities thanks to favorable weather conditions and the need for expansion of western logistics, construction, and rehabilitation of roads: the sectoral index in June was 58.6 (51.3 in May).
Almost all of the European Business Association companies have resumed their work in Ukraine. According to EBA director Anna Derevyanko, 99% of the association's members (which consists of about 900 companies) have completely or partially resumed their work in Ukraine during the war. At the same time, 63% of companies are planning investment in the near future, and some are already investing tens ofmns of euros into the economy. For example, Nestle plans to invest $43M in a new factory, Bauer – €60M, Kingspan – €200M, Phillip Morris – €20M. The situation in small and micro businesses is significantly less optimistic: only slightly more than 80% have fully recovered among small businesses.
Most Ukrainian businesses are considering entry into foreign markets.
According to an analysis from Gradus Research, about 69% of entrepreneurs support this trend. At the same time, 55% of respondents believe that because of these, Ukrainian specialists will start implementing international standards. Another 47% say these companies will later invest their profits in Ukraine, and 42% of respondents are convinced that useful experience from international activities will be applied in Ukraine. Also, 31% believe that scaling Ukrainian companies in foreign markets will contribute to a better attitude from foreigners toward Ukraine. However, some of those interviewed also pointed to negative consequences, in particular: a decrease in the number of jobs in Ukraine (12%), the threat of an outflow of specialists (12%), and a threat of an outflow of finances from Ukraine (7%). Fears are mostly characteristic of representatives from the older age category (55-60 years).
4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
Since the war began, 15% of Ukrainians have been unemployed, according to survey data from the Razumkov Center. The study shows that 77% of currently unemployed Ukrainians were not working before the war, and another 5% retired after it began. 10.4% of the currently unemployed lost their jobs after February 24, 2022, and another 4.2% resigned voluntarily. The main reasons for job loss are related to the closure of enterprises (29.5%) and forced migration (12.9%) from the area where they had worked. Another 8.7% temporarily went abroad and lost their jobs during that time. A little more than 4%, on the contrary, did not agree to relocation and lost their jobs due to the relocation of an enterprise to another region. For almost 10% of respondents, the reason for job loss was family circumstances that changed with the start of the war. Also, 7.5% of respondents cited low wages or non-payment as the reason for dismissal.
25 UKRAINE Country Report August 2023 www.intellinews.com