83% of Ukrainian companies have experienced a business decline – survey
The number of firms whose operations were affected by missile attacks has doubled in six months
What happened? 83% of companies that are members of the European Business Association experienced a business decline in 2022.
Source. The press service of the association.
Details. It is noted that the number of companies, whose operations have been affected by missiles, has almost doubled compared to October – from 47% to 89%.
"At the end of the year, most companies reported a drop in revenues in US dollars: 29% saw a drop of up to 20%, and 54% saw a drop of 21% or more. Only 6% of respondents reported no changes, and another 11% can boast of revenue growth in such a difficult year.
This result was completely opposite to pre-war business forecasts and expectations: before the full-scale invasion, 83% of EBA companies expected positive business development in 2022. At the end of the year, 83% experienced a decline," the report reads.
Russian attacks have resulted in interruptions in work processes, fewer productive hours, difficulties in planning, employee fatigue, increased costs due to the use of generators, and other negative consequences for the companies’ operations.
Power outages hold the top position of the anti-rating of current business challenges. In addition, companies also complain about Internet and communication outages, as well as problems with booking employees and travelling abroad. Currently, 88% of companies have employees in the army, of which 73% have up to 10% of their staff mobilised, and another 15% have 10-20% mobilised. Besides, 39% of companies have critical specialists being mobilised, namely IT specialists, engineers and other technical professionals.
As a result of the hostilities, 40% of companies suffered direct losses, and 25% have assets in the occupied territories. These are mostly equipment, machinery, real estate, and transportation. Business losses remain quite high: 32% report losses of up to $1 million, 36% – in the range of $1-10 million, and 16% – of more than $10 million.
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