REUTERS
Pessimistic expectations have actually intensified in all sectors of the country's economy.
Director of the Statistics and Reporting Department at the National Bank of Ukraine (NBU) Yuriy Polovniov says the Business Expectations Index (BEI) in Ukraine, for the first time, fell below 30 points in April over the coronavirus (COVID-19) quarantine, whereas the index below 50 indicates the prevalence of businesses' pessimistic sentiment.
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"Businesses' sentiment deteriorated again due to the global crisis and quarantine. The BEI, which the NBU estimates monthly, fell for the first time below 30 points in April. Any index value below 50 points indicates the predominance of businesses' pessimistic sentiment. For comparison, the index was 46 in March," he said in a videotaped statement posted on the regulator's website on May 4.
According to Polovniov, the main cause behind the decline in the index is the coronavirus epidemic with quarantine-related measures that have limited the business activities both in Ukraine and abroad.
Pessimistic expectations have actually intensified in all sectors of the economy. This refers not only to the services sector, which suffered most from the quarantine measures, but also to industry, construction, and trade.
"All companies have worsened their expectations for production and sales. This applies to both those enterprises that operate in the domestic market and exporters. Moreover, a significant number of companies are planning staff reductions, especially in the construction sector, while a large number of companies are placing employees on unpaid leaves," the official said.
Polovniov has added that entrepreneurs who participated in polls as respondents note difficulties in arranging remote work, as well as those in paying taxes, especially single social security tax, and the need to introduce loan holidays for businesses.
"However, the easing of quarantine planned by the government for May is expected to revive business activities and improve businesses' sentiment," he summed up.
As UNIAN reported earlier, the Cabinet of Ministers on March 11 imposed a nationwide quarantine, which was later extended until April 24 and further until May 11.
On May 4, the government reviewed the deadline for ending the coronavirus-related quarantine in the country, having set it for May 22.