Ukrainian businesses predict layoffs and rising prices.

Despite adapting to current conditions, Ukrainian businesses have worsened their expectations regarding economic activity. The index of expectations of business activity in January 2023 decreased to 37.5 points compared to the results of December with 42.1 points, according to a survey from the National Bank. Respondents predict a reduction in goods and services in terms of volume, new orders, and turnover. A further increase in prices and tariffs for respondents own products and services is expected due to a rise in purchase prices and prices of contractors. In addition, offers on the labor market remain at a low level. Respondents from all sectors are determined to reduce the number of employees, particularly in the construction sector.