According to the Investment Attractiveness Index made by the European Business Association one third of entrepreneurs say that investment climate will improve over the next 6 months, while half believe that it will remain on the same level.
Among the major findings of the research are explained below.
28.1% of respondents consider the investment climate attractive for investing. To improve the situation, it is necessary to start working on creating the Anticorruption court, to reform and restore trust to the judicial system, to open the land market, to reduce tax pressure on the wage fund, communicate positive changes and cases, downsize the state apparatus (according to some respondents, even up to 5 times reduction is needed). In addition, to develop innovations and to implement the second level of compulsory pension insurance are hot topics.
30.5% of company executives believe that the business climate has already improved over the past 6 months. Business positively evaluates the adoption of three Laws – “On Currency”, “On Companies with Limited and Additional Liability” and “On the Anticorruption Court”. Also, UAH stability, development of electronic services and digitalisation of the economy – which is a guarantee of transparency and openness – are successes. In addition, the entry of new foreign investors into the market, in particular in the field of retail, automatic refund of VAT, cancellation of bureaucratic seals, and beginning of reforms in the health care system are positive steps.
Among the negative moments, which have impact on the business are smuggling, which is a barrier to the development of legal business, increasing pressure of controlling bodies, aggravation of the conflict in some parts of Donbas and populism ahead of the election campaign.
The Index consists of three components: investor assessment of the previous period, forecasts for the next six months, and assessment of the current situation. The Index has been measured every six months starting from 2008. The mark of “3” is considered neutral; all the points above 3 mean positive shifts.