Russian business has ceased to hope for growth


Photo: Alexander Petrosyan / Kommersant

The expectations of Russian entrepreneurs in their own business and the economy as a whole was the worst in five years, according to RBC, citing data from the quarterly research “Support of Russia”, the PSB and the Agency Magram Market Research.

The study showed that in the fourth quarter of 2018, the index of business activity of small and medium business index (RSBI) has decreased by 1.4 points compared to the third quarter and reached 47.1 points. A level below 50 indicates contraction in the sector.

Small business has actually been in recession, is also experiencing major problems and is forced to cut costs. The business activity was affected by the VAT increase, reduction of benefits and preferences, the growth of inflation to 5 per cent, reduction in real incomes.

The prospects for small businesses in 2019 is rated as “moderately negative”. 68 percent of respondents reported that they did not hope for growth and will be engaged in optimisation of costs. In the next two years is expected events that would become growth drivers, experts say.

The number of new business entities last year dropped by 18.9 percent and amounted to 316,9 thousand legal entities. in Parallel, there is an increasing elimination of commercial structures. For 2018, due to bankruptcy, liquidated 9.8 thousand companies. In just 2018 ceased operations 644,1 thousands of commercial structures is 4.3% more than in 2017.

Video, photo All from Russia.


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