site.bta Businesses Are Moderately Optimistic about National Economy in 2017 - Survey

Businesses Are Moderately Optimistic about National Economy in 2017 - Survey

Sofia, December 16 (BTA) - Businesses are somewhat cautious and moderately optimistic about the development of the national economy in 2017, and expect the economic growth to remain close to the 2016 levels. This transpires from a recent business climate survey by the Bulgarian Chamber of Commerce and Industry carried out as part of a study by the Association of European Chambers of Commerce and Industry among 25 companies in September. The Bulgarian survey included 489 companies of which 81 per cent sell abroad.

The survey showed that 38 Bulgarian companies expect the business climate to improve in 2017. 37 per cent find the business climate in 2016 more favourable than a year ago.

In the Europe-wide survey, Bulgaria has the 6th most optimistic expectations about business climate in 2017 among the EU member states and 9th most optimistic among all 25 European countries included the survey.

The respondents believe that some recovery is likely on the domestic market and they expect improvements for their revenue in 2017 compared to previous years.

Despite the optimism, the companies which continue to rely on bigger sales abroad outnumber those who expect growth on the domestic market (43 per cent against 36 per cent).

The majority of companies (65 per cent) plan to keep their staff. In 2016, close to a third of businesses increased their jobs but such an increase is unlikely in the new year as less than a fourth of respondents expect to be hiring more workers.

In the investment field, 58 per cent expect the investment volume to remain unchanged in 2017, 12 per cent expect a decrease and 30 per cent an increase.

The lack of qualified labour is likely to remain the worst problem for employers in 2017. Other issues are the economic policy of the government (mentioned by 36 per cent of respondents) and the increased electricity prices for industrial users (since late 2015).