Exporters have adapted better to war conditions than businesses operating in Ukraine’s domestic market.

Businesses engaged in exports have demonstrated better adaptability to the current situation in Ukraine compared to businesses that do not have sales abroad, although there are certain differences among exporters depending on the size of the enterprise, the IER stated.

“Exporters demonstrate better assessments of the financial and economic situation at the enterprise and also better assess the business climate. At the beginning of the war, business assessments were similar, but from the fall of 2022, exporters began to better assess both the foreign economic environment and their situation at the enterprise”, informs the IER.

At the same time, the state of export activity improves with an increase in the size of the enterprise: 33% of micro and 31% of small enterprises did not export in the last 12 months, and only 12% of medium and 8% of large enterprises. It is most difficult for micro and small businesses: more than 30% of respondents who had exports before the start of the war have not supplied products abroad in the last 12 months. However, there is significant optimism regarding export growth: 45% of respondents plan to increase, and only 4.5% plan to decrease.