The 2021 third quarter Business Expectation Survey results report has been released. The results suggest that firms are optimistic about economic activity in the third quarter of 2021 compared to the previous quarter wherein they were pessimistic (Chart 2). However, they anticipate tight access to credit across all markets. The optimism is evident in the anticipated improvement in profitability; sales volume; imports of goods and services; and investment in plant and machinery, in the current survey compared to the previous one. Firms also expect cost pressures to rise in the fourth quarter of 2021 compared to the third quarter, mainly reflecting second-round effects of the 2 percentage points increase in Value Added Tax (VAT) effective April 2021. Firms expect average inflation to be slightly above the Bank’s 6 percent upper bound in 2021, but expect it to revert to within the medium-term objective range of 3 - 6 percent in 2022.
The report is attached below: