EBA survey shows improvement compared to Oct

KYIV. Jan 31 (Interfax-Ukraine) – The vast majority of companies that are members of the European Business Association (EBA) currently pay wages in full – 89% of them, while in October last year their number was 78%, in July – 61%, according to the results of the new wave of the EBA survey of businesses amid the war.

According to them, the share of companies that reduced wages fell to 8% from 15% in October and 21% in July, while paying additional funds returned to 25% after falling to 18% in October from 28% in July.

The same dynamics with regard to layoffs: a decrease to 5% from 7% in October and 10% in July.

In addition, today all the association’s companies that took part in the survey are working, while in October 3% were idle. At the same time, the share of full-time employees increased to 54% after the drawdown in October caused by the first rocket attacks on the energy infrastructure to 44% from 49% in July.

Also, the share of companies that limited the geography of their activities returned to the level of July – 44% after rising to 51% in October.

One likely reaction to the power outages was a massive drop in online workers, down to 14% from 26% in October and 18% in July.

"At the end of the year, most companies reported a drop in revenues in U.S. 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," the report says.

"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 EBA said.

"Compared to October 2022, the number of companies, whose operations are affected by missiles, has almost doubled from 47% to 89%. The Russian shelling has led to 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," it says.

"Power outages hold the top position of the anti-rating of current business challenges. Besides, 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 mobilized, and another 15% have 10-20% mobilized. In addition, 39% of companies have critical specialists being mobilized, namely IT specialists, engineers and other technical professionals," the association stated.

"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% report losses in the range of $1-10 million, and 16% report losses of more than $10 million," the report reads.

"Moreover, the financial stability of companies is improving: 27% of companies have financial reserves for six months, 23% for a year, and 36% for a year or more," it says.

The survey was conducted from January 16 to 26, 2023, with 100 top managers of EBA member companies participating.