Page 27 - UKRRptSept22

4.4 Corp profit
Business activity expectations have slightly improved. As reported by the National Bank, the index of expectations of business activity in August increased to 44.1 from 43.6 in July. Industrial enterprises improved their economic expectations. The sectoral index was 46.7 in August compared to 43.1 in July. Construction enterprises also increased their performance estimates from 35 in July to 41.2. At the same time, trade enterprises have worsened expectations but are still close to neutral. The index was 47.4 compared to 48.7 in July. Enterprises in the service sector had the most restrained ratings. The index deteriorated to 39.6 from 41.9 in July. The National Bank added that enterprises in all sectors are forecasting an increase in the price of their products or services resulting from rising prices for raw materials and suppliers' goods.
The number of international companies represented in Ukraine has decreased by 78%. The number of international companies and their representative offices in Ukraine fell from 624 at the beginning of the year to 137 in July 2022, reported UTG. However, it is noted that the exodus began back in 2008. The majority of the international financial institutions that left Ukraine after the 2008 global economic crisis have never returned. Moreover, the armed aggression of the Russian Federation led to a mass outflow of Russian companies back in 2014-2015, and a further reduction of their presence is expected. Among the companies leaving Ukraine are those from the IT industry. "In the near future, the absorption of office space by the IT industry is expected to decrease," UTG noted. However, experts are convinced that the international public's loyalty to Ukraine will contribute to the emergence of new European organisations, enterprises, and brands. And this, in turn, will contribute to the new flourishing of office real estate in the country's major cities after the war.
27 UKRAINE Country Report September 2022 www.intellinews.com