Business in Ukraine Deteriorates Expectations Due to Political Instability and Lack of Demand

Бізнес погіршив очікування через непередбачуваність політики, брак попиту та працівників.

The business activity index of Ukrainian enterprises dropped to 36.8 points out of a possible 100 in December 2025, which is one and a half points lower than in September. This indicates a decline in confidence among entrepreneurs and an increase in pessimistic sentiments in the market.

This is reported by Business • Media

Assessments of Financial Condition of Enterprises and Labor Market Trends

Survey results showed that more than half of the respondents – 50.7% – assess the financial and economic condition of their companies as poor or satisfactory. Another 31.9% characterize it as mediocre, and only 17.4% consider the situation positive or excellent. Regarding future forecasts: 29.3% expect improvement, 37.3% predict stability, while 33.3% fear further deterioration.

The situation with personnel remains relatively stable; however, on average, the number of employees in companies has decreased by 7.6% over the year. Staff reductions occurred in 39.5% of enterprises, while 15.9% of companies, on the contrary, increased their workforce.

Production Load and Major Challenges for Business

The average level of production capacity utilization is 64.8%. Only 16.9% of companies are fully loaded, while 10.7% are forced to operate at a critically low level of utilization – less than 25%.

The main obstacles to business development are unpredictability of government policy (62.7%); overall uncertainty regarding the situation in the country (59.1%); lack of solvent demand (54.7%); shortage of qualified labor (46%); high tax burden (40.9%).

These obstacles significantly impact the plans of enterprises and their investment activity, forcing businesses to seek new ways to adapt to changing market conditions.