The 2022 second quarter Business Expectation Survey results report has been released. The results of the current BES suggest that firms are pessimistic about business conditions compared to the previous survey. The pessimism is reflected by firms’ expectations of weaker domestic economic performance, hence lower inventories, reduced investment in buildings, plant and machinery, as well as “other” investments, compared to the March 2022 survey. Furthermore, firms anticipate tight access to credit across all markets. They also expect cost pressures to remain high in the third quarter of 2022, mainly reflecting upward adjustments in fuel prices due to supply constraints arising from the Ukraine-Russia war. Overall, the decline in business confidence, is expected to have a negative impact on domestic economic performance. Meanwhile, firms expect inflation to remain above the Bank’s 3 - 6 percent objective range in 2022.
The full report is attached below: