Business expectations fell to their lowest level in five years

Business expectations fell to their lowest level in five years, according to the National Bank’s latest quarterly survey of company executives. The second quarter level was 91%, a sharp drop from the Q1 level of 110.5%. Business leaders expected inflation to deteriorate to 7% by the end of this year and the hryvnia exchange rate to hit UAH 28.28 / $1. “For the first time since the first quarter of 2016, enterprises expect a reduction in the production of goods and services in Ukraine,” the central bank reports. “Almost half of enterprises expect the worst dynamics, and only every seventh company – production growth.”