The 2022 first quarter Business Expectation Survey results report has been released. The results suggest that firms are less optimistic about business conditions than they were in the previous survey. Overall, businesses expect lower sales, inventories and profit, as well as reduced capacity utilisation, compared to the December 2021 survey. Furthermore, firms anticipate tight access to credit across all markets. Firms expect cost pressures to be higher in the second quarter of 2022 than in the first quarter of 2022, mainly reflecting the anticipated upward adjustment in fuel prices due to challenges arising from the Ukraine/Russia war. The decline in business confidence among both domestic market-oriented and export-oriented firms is expected to have a negative impact on the domestic economic performance. Meanwhile, firms expect inflation to remain above the upper bound of the Bank’s 3 - 6 percent objective range in 2022.

The full report is attached below: