Belarusian companies increase inflation expectations - IPM index

<p> MINSK, Mar 16 - PrimePress. Belarusian companies still expect inflation to accelerate, with inflation expectations increasing in February 2021, as can be seen from the findings of February’s IPM index survey. </p> <p>   </p> <p> The composite IPM index was prepared based on the data of the online survey of companies, including clients of the IPM Business School, which surveyed the owners and top managers of the companies. </p> <p>   </p> <p> According to the survey results, the proportion of companies that plan to increase selling prices in the next two to three months was 49.2%., 41.6% of respondents have already increased selling prices in the previous two to three months. </p> <p>   </p> <p> The availability of external financing for businesses remains limited. In February, representatives of 67.1% of companies responded that it is more difficult for them to obtain credit or other financing than usual. Compared to January 2021, there was a slight improvement in the situation (the index value rose from 26 to 28.5). This was due to a reduction in the proportion of respondents who found it “much more difficult than usual” to obtain credit (from 28.5% to 20.2%). </p> <p>   </p> <p> In the February survey, business leaders were asked about the factors that hinder the development of their companies. According to the respondents, the top five barriers included a highly uncertain economic environment; lack of trust in the legal system; macroeconomic instability (currency rates fluctuations, inflation); low demand; and high cost of borrowing. </p> <p>   </p> <p> As in the previous months, the main barriers to business development were the high uncertainty of the economic environment, lack of confidence in the legal system and macroeconomic instability. At the same time, for the first time the lack of confidence in the legal system was ranked as high among the barriers to doing business in Belarus. </p> <p>   </p> <p> The next most important group of barriers is the financial group: low demand, financial problems, high cost of borrowing and lack of qualified personnel. The importance of the other barriers is low and has been generally decreasing in recent months against the background of the growing influence of the barriers from the top 3. </p> <p>   </p> <p> Overall, the composite IPM index (39.64) remained broadly unchanged in February 2021 compared to January and remained in the recession zone. The values of most indicators in the index (with the exception of expected employment dynamics) are significantly below 50, indicating the expectation of a further downturn on the part of private business. End </p>

2021-03-17

Primepress