investment attractiveness index

Investment Attractiveness IndexInvestment Attractiveness Index with the support of theInMind research company

Investment Attractiveness IndexInvestment Attractiveness Index

EBA


ProjectProject summarysummary

Methodology: The EBA Investment Attractiveness Index is assessed as the mean value based on the following five questions:

What do you think about the investment climate in Ukraine?

How would you estimate the investment climate for your company in Ukraine at the moment compared to the previous six months?

What are your expectations of the investment climate in Ukraine over the next six months?

In your opinion, would it be profitable for new entrants to invest in Ukraine over the next six months?

What are your expectations of the business environment of your primary industry over the next six months?

Participants: 151 CEOs of EBA members companies

Timing: September, 3rd – October, 2nd, 2008

Survey Implementation: the Survey was conducted by EBA with the support of InMind research company


Key findingsKey findings

Investment Climate in Ukraine

Investment Climate Dynamics: last 6 months

Investment Climate Dynamics Expectations: next 6 months

Profitability for new entrants: next 6 months

3,1

Value

2,8

3,1

3,4

General EBA Index

3,1

Investment Climate of Primary Industry: next 6 months 3,3



• Five-grade scale is used to evaluate the investment climate, where 1 stands for the lowest evaluation and 5 stands for the highest evaluation.

• The EBA Investment Attractiveness Index reaches 3,1 on a 5 point scale. The obtained figure has the average meaning that indicates general evaluation of investment climate as stable with no significant worsening or improvement in the nearest future expected.

• The EBA Investment Attractiveness Index shows that the respondents are quite neutral in terms of the investment climate. Meanwhile the expectations for next 6 months are significantly more positive then the estimation of last half year period. It indicates that business in Ukraine is still believed to be relatively independent of the world economy given that so many experts did not see a deterioration.

• There is a trend to evaluate the investment climate in primary industry as well as profitability for new entrants slightly higher which means that the respondents are more optimistic regarding these issues compared to the investment climate in Ukraine in general.

•The lowest evaluation of investment climate can be observed in Production industries (2.9) while the highest in B2B services (3.4).



33,13,33,3

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

1st week 2nd-3rd weeks 4th week 5th week

• There is also a trend of recession of EBA Investment Attractiveness Index as the subject to time of participating in the survey. It could be attributed to the integrated impact of world economics crisis and negative impact of political instability in Ukraine.

(September, 3-7) (September, 8-21) (September, 22-28)

(September, 29 – October, 2)

N=42 N=26 N=50 N=33


EBA – Index:EBA – Index:

ComponentsComponents


37%18%

33%

4% 8%

N=151

Investment Climate in UkraineInvestment Climate in Ukraine

The Investment Climate in Ukraine is definitely favorable

to investing

The Investment Climate in Ukraine is rather favorable

to investing

The Investment Climate in Ukraine is neutral to investing

The Investment Climate in Ukraine is rather

unfavorable to investing

The Investment Climate in Ukraine is definitely

unfavorable to investing

Mean = 3,1


7%

28%

50%

12%3%

0%

10%

20%

30%

40%

50%

60%

The InvestmentClimate

definitelybecame worse

The InvestmentClimate ratherbecame worse


remained thesame

The InvestmentClimate ratherbecame better


definitelybecame better

Investment Climate Dynamics: Investment Climate Dynamics: last 6 monthslast 6 months

N=151

Mean = 2,8


2%

22%

50%

17%9%

0%10%

20%30%40%

50%60%

TheInvestmentClimate will

definitelybecome worse


rather becomeworse

TheInvestmentClimate willremain the

same


rather becomebetter

TheInvestmentClimate willdefinitely

become better

Investment Climate Dynamics Investment Climate Dynamics Expectations: next 6 monthsExpectations: next 6 months

N=151

Mean = 3,1


40%

14%2%

17%

27%

Profitability for New entrants: Profitability for New entrants: next 6 monthsnext 6 months

Definitely profitable

Rather profitable

Neutral

Rather not profitable Definitely not

profitable

N=151

Mean = 3,4


2%17%

45%

16% 20%

0%10%20%30%40%50%

Theinvestmentclimate willdefinitelybecomeworse

Theinvestmentclimate will

ratherbecomeworse

Theinvestmentclimate willremain the

same

Theinvestmentclimate will

ratherbecomebetter

Theinvestmentclimate willdefinitelybecomebetter

Investment Climate of Investment Climate of Primary Industry: next 6 monthsPrimary Industry: next 6 months

N=151

Mean = 3,3


General EBA Index General EBA Index by Primary Industryby Primary Industry

3,33,33,1

3,42,9

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

Production B2B services B2C services Transport &Telecomunication

Other

EBA Index

3,1

N=151

N=45 N=29 N=36 N=21 N=20

The difference is statistically significant


Thank you!Thank you!

investment attractiveness index

Documents