Over Half Of Russian Companies Believe Business Prospects Will Improve - Deloitte
Umer Jamshaid Published December 06, 2019 | 03:06 PM
More than half of Russian businesses (51 percent) expect positive changes in companies' financial prospects in the near future, a study conducted by the global accountancy firm Deloitte, seen by Sputnik on Friday, revealed
MOSCOW (UrduPoint News / Sputnik - 06th December, 2019) More than half of Russian businesses (51 percent) expect positive changes in companies' financial prospects in the near future, a study conducted by the global accountancy firm Deloitte, seen by Sputnik on Friday, revealed.
Participants in the study were asked to evaluate business prospects regarding the development of companies in Russia in comparison to six months ago. The study is based upon interviews held with financial directors of leading Russian companies, which took place in September and October 2019.
"Today, most business representatives (51 percent) expect optimistic changes in the current financial situation of their company, which contrasts against the high number of neutral assessments in the first half of 2019 (the share of respondents who did not foresee any significant changes was 51 percent), indicating that companies have dealt with many difficulties and are now focused on positive improvements," the authors of the study stated.
While respondents predicted that operating costs would increase, business representatives expect to see an increase in the growth rate of income and operating profits, and a general decrease in capital cost growth. Transport and pharmaceutical companies have the most positive outlook, as more than 60 percent of respondent in these sectors expect business to improve.
The banking sector is the most pessimistic, as 36 percent of respondents in this sector expect negative changes in the coming months.
According to the Deloitte study, small and middle-sized enterprises (defined as companies with revenues below $31.4 million) have the most positive outlook, with 73 percent of these firms expecting business prospects to improve. The second-most positive group is Russia's largest companies, those defined as companies with annual revenues exceeding $784 million � 56 percent of respondents belonging to this group believe that business will improve in the near future.
Respondents cited decreasing levels of risk and uncertainty as the Primary factor shaping their positive outlook. Among the risks that have a significant negative impact on business development in Russia are decrease in foreign and domestic demand, increased protectionism and cyberthreats.
In November, the International Monetary Fund predicted that growth will pick up in Russia in 2020, reaching 1.9 percent. Inflation is also projected to fall below 3 percent early next year.
Related Topics
Recent Stories
Usain Bolt named ICC Men’s T20 World Cup 2024 Ambassador
PM visits martyred Customs official's residence in Abbottabad
Ethiopian Special envoy urges Lahore's traders fraternity to join trade delegati ..
Kazakhstan envoy meets commissioner
Safari Park to welcome Madhubala elephant in May
2 ring leaders among 3 terrorists killed in Khyber operation
Govt committed to developing gems, jewelry sector: Minister
Punjab CM Maryam faces legal challenge for wearing police uniform
PTDC plans to organize two-day tourism expo
COP29 host says deal on climate aid essential but offers few details
SC orders end of encroachments in Karachi
Nazish Jahangir denies viral screenshots, calls them fake
More Stories From Business
-
Govt committed to developing gems, jewelry sector: Minister
1 minute ago -
Pakistan earns $1,976 million from IT services' export in 8 months
1 hour ago -
PSX loses 80 points
2 hours ago -
Ahad Cheem lauds UNDP’s cooperation
2 hours ago -
London stocks hit new record on blockbuster mining takeover bid
2 hours ago -
Sialkot University, Ministry of Climate Change, Ethiopian embassy host business forum
2 hours ago
-
Govt likely to hike electricity price once again
4 hours ago -
Mining giant BHP launches bid to take over rival Anglo American
4 hours ago -
Gold rates up by Rs500 per tola to Rs242,500
6 hours ago -
Tokyo stocks end lower after Meta results
6 hours ago -
EXCHANGE RATES FOR CURRENCY NOTES
7 hours ago -
Foreign exchange rates
8 hours ago