Page 35 - UKRRptOct23

4.4 Corp profit
Businesses in Ukraine are ready to expand their staff and raise employee salaries. According to EBA data, 58% of companies predict positive development dynamics in 2024. At the same time, 29% of directors of EBA member businesses expect to maintain business indicators in 2024, and 13% predict negative dynamics. At the same time, most managers expect income growth in 2024: 72% expect an increase in hryvnia value and 55% in terms of volume. In particular, 35% of respondents expect an increase of up to 10%, and 25% - by 11-20%. For the 2024 budget, company heads set the value of the national currency at UAH 41/$1. Two out of every five managers plan to hire new people next year, but almost half of the companies (48%) will leave their teams unchanged, and 12% plan to reduce staff. Also, 87% of companies will increase their employee wages. The number of companies planning to implement new investment projects increased from 19% to 26%. The average cost of planned projects has also increased, to $8M. The number of companies planning investments in social initiatives has also increased - from 60% to 65%.
The EBRD plans to increase support for Ukrainian businesses next year.As the Minister of Economy of Ukraine, Yulia Svyridenko, reported after the meeting with the President of the EBRD, Odile Renaud-Basso, the bank is ready to participate in financing the demining of agricultural lands and to develop a special financial product to provide working capital for manufacturers of special demining equipment. The parties also discussed cooperation between the EBRD and development finance institutions (DFI) to coordinate investment efforts in Ukraine, particularly in the private sector. The parties also discussed increasing direct lending to Ukrainian private businesses, supporting the liquidity of state-owned companies, and insuring military risks. Separately, Svyridenko and Renaud-Bassio discussed involving the EBRD in financing state business support programs like the 5-7-9% loan program or grants to support processing industries and small businesses. The EBRD participates in 547 projects in Ukraine, and its total investment amounts to almost €18.4B.
4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
European Commission President Ursula von der Leyen announces her intention to propose extending protection for Ukrainians who are fleeing the war waged by Russia against Ukraine in the European Union. She said this in Strasbourg on Wednesday, speaking at the European Parliament with the "State of the Union" address. Assuring that the EU will be with Ukraine as long as necessary, the President of the European Commission said since the beginning of this war, 4mn Ukrainians have found refuge in the EU. "I want to say to them that they are as welcome now as they were in those fateful first weeks [of the Russian invasion]. We have ensured that they have access to housing, healthcare, the job market and much more. This was Europe answering the call of history. "And so I am proud to announce that the Commission will propose to extend our temporary protection to Ukrainians in the European Union," von der Leyen said.
35 UKRAINE Country Report October 2023 www.intellinews.com