Amid full-scale Russian military aggression, Ukrainian businesses have showcased remarkable resilience, buoyed by enduring optimism even as uncertainty clouds the horizon. This sentiment emerges from the monthly surveys conducted by the Institute of Economic Research and Political Consultations (IER), providing valuable insights into the ever-changing landscape of business activity in times of war.
Imagine you are running a business. You have a small business or a trade, and you are doing just enough to maintain the same standard of living across challenging times. Then suddenly, without any increase in your income compared to the prices around you, the state tells you that you are already earning enough to pay more in taxes.
Medium-sized private enterprises play an important role in the economy and social development. Medium-sized enterprises operating in domestic and foreign markets are a kind of “backbone” of the economy. Compared to small and large enterprises, medium-sized businesses have higher viability, better access to external financing, and “economies of scale” benefits.
It is difficult to do business with a country whose politicians are detached from reality and do not understand today’s world because they are afraid of it, says Arkadiusz Mus, founder of Press Glass, No. 9 on Forbes magazine’s list of 100 richest Poles and owner of assets worth more than PLN 4.5 billion, about Poland under the rule of Law and Justice (PiS).
A full-scale war became an existential challenge for the Ukrainian industry. Manufacturing enterprises have been forced to actively cut expenditures for innovation, shifting the focus from development to survival. At the same time, businesses see opportunities to restore innovative activity with the help of industry support programs, fiscal incentives, and other measures at the state level.
Millions of people and thousands of businesses in Ukraine remain without electricity every day due to damage to infrastructure damage caused by Russian shelling. For two months in a row, the Russian Federation has been launching rocket attacks on the civilian infrastructure of Ukraine every week. The target of this damage was the network of substations and transformers that provide electricity transmission from generating plants.
In August 2022, the production recovery in Ukraine continued, but the dynamics of the indicators of the economic conditions indicate a possible slowing down of the recovery trend in 6 months perspective. This is indicated by several important factors.
A month ago, Ukraine and the EU signed a road agreement that simplified road freight requirements between the parties. The arrangement proved to be mutually beneficial – trade volumes increased, and the cost of transportation from Ukraine decreased.
Ukraine’s manufacturing sector suffers war losses, but most industries keep optimism about the future. However, manufacturers that secure the basic human needs (food, clothing, and shoes) demonstrate the best production and recovery results.
Of course, everyone would be delighted if the supermarkets were full of quality Slovak fruit, vegetables, meat, and other products. However, this ideal cannot be achieved by a policy of self-sufficiency, but by a policy of cooperation.
