More than half of the surveyed companies, namely 58%, predict positive dynamics of their business development in 2024. These are the findings of the European Business Association (Global Business for Ukraine partner organization) Business Forecasts for 2024 survey. Last year, the number was 47%. This year’s results demonstrate a positive trend of cautious improvement in the mood and forecasts of CEOs managers of EBA member companies.
At the same time, 29% of directors expect to keep business indicators at the level of the previous year in 2024, and 13% predict negative dynamics (last year the number was 25%).
Companies are improving their financial indicators forecasts. Most managers expect revenue growth in 2024: 72% expect an increase in hryvnia, and 55% – in physical terms. Last year, the figures were 58% and 43%, respectively. In particular, 35% of the surveyed entrepreneurs expect an increase in revenues in hryvnia of up to 10%, and 25% – by 11-20%. A drop in revenues in hryvnia is predicted by 16%, and 17% in real terms.
In their budgets for 2024, company executives set the value of the currency at an average of 41 UAH/$. For comparison, in 2023, businesses budgeted 43 UAH/$, and in 2021-22 – 29 UAH/$.
Next year, 2 out of 5 CEOs plan to hire new people. Last year, this figure was half as much. At the same time, about half of the companies, namely 48%, will leave the team unchanged, and 12% plan to reduce staff.
The overwhelming majority of surveyed companies, namely 87%, will increase the salaries of their employees. Of these, 46% plan to increase salaries by up to 10%, and 41% plan to increase salaries by 10% to 20%. Only 1% of companies will reduce salaries, and 12% plan to leave them unchanged. Last year, 73% of company executives resorted to raising salaries.
Compared to last year, the number of companies planning to implement new investment projects has increased from 19% to 26%. The average cost of planned projects has also increased and amounts to about $8 million (an average of $3 million in 2023).
The number of companies planning to invest in social initiatives has also slightly increased – from 60% to 65%. On average, businesses are ready to allocate about 6% of their revenues to social projects. In 2023 and 2022, these figures were 8% and 3%, respectively.)
Anna Derevyanko, the GB4U Co-Founder and the EBA Executive Director: 'Businesses are gradually recovering, investing and making plans, which means they believe in a better future for Ukraine and our victory. Moreover, it is bringing it closer in every way possible and is placing great emphasis on social initiatives. At the same time, we see a demand for reforms that are frankly overdue, such as an effective fight against corruption, judicial reform, and protection of investors′ rights. This is our commitment to the EU, our responsibility to transparent business that remains committed to Ukraine in the most difficult times.'
The business traditionally lists the fight against corruption, the need for judicial reform, the establishment of the rule of law, and ensuring macroeconomic stability as the top three priorities for the Government.
For reference:
91 CEOs of member companies of the European Business Association participated in the study “Business Forecast 2024”. The survey was conducted from August 26 to September 4, 2023. The Business Forecasts survey has been conducted by the EBA for 8 years in a row.