There is a lot of uncertainty among SMEs

By: Trademagazin Date: 2024. 08. 14. 12:14

The Economic and Business Research Institute’s (GVI) Quarterly Economic Index for July 2024 shows a significant decline compared to the previous quarter. The value of the indicator decreased from +20 points in April 2024 to +9 points, which indicates that the economic expectations of businesses have deteriorated. This drop is particularly notable as the current value is already lower than the drop seen during the October 2022 energy crisis.

During GVI’s quarterly survey of business conditions, 350 managers of companies employing at least 20 people were asked about their business situation and prospects. The purpose of the survey is to map the short-term business expectations of company managers, which is based on the information available at the time of data collection and their subjective assessment of the situation.

According to the data, the decrease in the indicator was most noticeable in the industrial, foreign-owned and large-enterprise category. The assessment of the situation of domestic enterprises is increasingly uncertain, which is also reflected in the 42-point value of the Uncertainty Index. This value is comparable to the levels of July 2023 and October 2022, as well as the period of the coronavirus epidemic.

Among the different sectors, the indicator of the service sector is the highest, +27 points, while among companies operating in industry, it is the lowest with -1 point. Compared to the previous quarter, the indicator fell by 16 points in the manufacturing industry, by 7 points in services, and by 3 points in the construction industry, while the indicator stagnated in the trade sector.