BIEC: companies operate under the pressure of rising costs and arrears in investments

The increase in economic activity two months ago was a one-off event. Currently, companies are under pressure of rising costs, tax mess, lack of qualified employees, and backlogs in investments, the Investment and Economic Cycles Office (BIEC) said.

As BIEC informed on Monday, the Leading Business Climate Index (WWK), informing in advance about future trends in the economy, fell by 1.3 points in February as compared to the reading from a month ago. According to analysts, the economy found itself on the path of a slowdown.

Experts noted that the increase in economic activity two months ago was a one-off event, probably related to the increased demand around the holiday season and the rebuilding of inventories in enterprises' warehouses. Companies are now operating under pressure from rising costs, tax clutter, a shortage of skilled workers, and investment backlogs.

According to analysts, the lack of an inflow of EU funds, which some companies probably counted on, additionally limits their economic activity.

(PAP)