Bìznes Inform (Feb 2020)
The Economic Situation in Ukraine: Business Expectations
Abstract
Significant efforts have been made over the past five years to improve the economic situation and economic growth to simplify the conduct of business. However, Ukraine is now perceived as a country with excessive regulation and high levels of corruption, which is not favorable for the business environment. Therefore, research on the factors that affect business expectations at the current stage is extremely relevant. The article is aimed at studying the conditions for creating a favorable environment for business by introducing deregulation measures, eliminating excessive administrative burdens on business and reducing the State control. In the study, the methodology of statistical analysis and the scientific approach of «forecasting» are used. Business expectations, which mainly consist of positive assessments and forecasts regarding the economic situation in Ukraine, are evaluated. However, the business environment notes that Ukraine still has problems in organizing and implementing reforms. The main problem directions have been defined as follows: unstable production growth, shortage of qualified personnel, low growth rates, coherence of the legislative environment. The existence of informal relations between the various branches of government and business has been discovered. Respondents of all economic activities, except energy and water companies, predict growth in total sales volumes and improved financial-economic conditions. Enterprises in the trade and processing industries have the highest expectations. The shortage of qualified personnel may be one of the factors that will hamper economic activity in the future. Prospect for further research in this direction is the issue of developing measures to improve the expectations of the business environment. In practical terms, there is a disparity between the regions of Ukraine and the scale of business relative to the economic expectations for 2020.
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