According to a survey by the Institute of Economic Research, over 85% of industrial enterprises in Ukraine do not intend to reduce production volumes over the next two years. Specifically, 85.6% of companies plan to maintain their current production levels, while another 12.1% even plan to increase it. Only less than 2% of respondents expect a decrease in production activity, which is the highest indicator of stability since October 2022.
This is reported by Business • Media
Production Dynamics and Business Sentiment
In June, an increase in the share of enterprises that ramped up production was recorded: this figure rose from 19.5% to 22.6%. At the same time, the number of firms reporting a reduction in production decreased from 13.5% to 11.6%. These data indicate a gradual recovery of the industrial sector and positive business expectations regarding future prospects.
Key Barriers for Industry
The main barrier to business development identified by respondents is the security situation. According to the survey, 58% of enterprises highlight risks associated with the war, missile strikes, and threats to physical infrastructure as a primary issue. Additionally, 58% of respondents emphasize the shortage of skilled labor, which has remained a relevant problem for over a year.
Moreover, inflation impacts the activities of enterprises: 42.8% of survey participants predict further increases in prices for raw materials and supplies, while 42.4% expect higher prices for finished products.
“The security situation remains the main barrier to business development. Risks associated with the war, missile strikes, and threats to physical infrastructure were identified as a primary issue by 58% of respondents.”