What do the results of a large pan-European economic survey of the European chambers report?
The CCCI participated once again in the large Pan-European Economic Survey of the European Chambers of Commerce in Europe, which is held every autumn with the participation of the European Chambers. The survey involved more than 52,000 companies in 26 European countries and the results were announced today.
According to the survey, companies are looking forward to an economic recovery for 2022, contrary to the very pessimistic forecasts of last year's survey for 2021. All indicators are expected to be better, supplying the overall business environment with positive expectations regarding the speed of the process. recovery.
The 29th annual edition of the Economic Survey reflects a common belief in a 2022 pandemic recovery, but it should be emphasized that as we enter a new economic phase, unprecedented threats and growing risks remain a possibility.
Also, as the mismatch between supply and demand globally is expected to continue over the next year, concerns about potential supply chain disruptions and shifting consumer behavior persist.
Businesses expect affordable access to energy and raw materials to be the biggest challenge for next year, along with uncertainty about labor market adjustments due to shortages of skilled workers and overall rising labor costs.
The findings for Cyprus (where the local survey was conducted by the CCCI), although improved compared to last year, are generally less optimistic than those of other countries and are as follows:
The main effects of the pandemic on Cypriot businesses were the problems that arose for tourism due to travel restrictions, the problems caused by restrictive measures, changes in consumer behavior, disruptions in the supply chain and the difficulty in dealing with their loans. obligations.
The main challenges that Cypriot companies expect to face in 2022 are labor costs, lack of manpower with the right skills, access to finance, the constant rise in prices of energy and raw materials, their digital transformation. and environmental requirements.
- 24% of Cypriot companies believe that they will have increased domestic sales in 2022 while 46% believe that their sales will remain at the same levels. Although the forecasts are better than last year, they are still lower than the European average.
- 45% of Cypriot companies believe that they will have reduced exports in 2022 while 31% believe that their exports will remain at the same levels. Here too, although the forecasts are better than last year, they are still lower than the European average.
- 27% of Cypriot companies believe that they will have increased staffing needs in 2022 while 56% believe that they will not have additional staffing needs. This result is very close to the European average.
- 29% of Cypriot companies believe that they will make increased investments in 2022 while 48% believe that their investments will remain at the same levels. This result is relatively lower than the European average.
- 33% of Cypriot companies express more optimism for 2022 while 48% believe that their optimism will remain at the same level, with the result that it is very close to the European average.
The results of the pan-European survey show a gradual growth expected in 2022 in terms of both national and export sales. After a period marked by demand constraints and supply chain problems, the resumption of economic activities and the reduction of household savings are expected to be the drivers of the economic recovery in 2022. In addition, investment decisions, which were temporarily suspended or postponed during the pandemic, are likely to push European companies towards a digital and greener long-term course. Therefore, there is a need for appropriate and inclusive policies.
This year's economic survey provides valuable information on key areas of intervention for policy makers at EU and national level so that they can be better built after the pandemic. The gradual allocation of national recovery and resilience funds will support the adoption of innovative and sustainable business models. At the same time, the promotion and application of digital and green skills will encourage competitiveness in the new economy. Achieving this goal will require continued investment in research and innovation, combined with an SME-friendly regulatory framework that supports innovative and sustainable business solutions. The smooth functioning of the single market is extremely important for European companies and is a prerequisite for Europe's competitive advantage. The EU and its Member States must therefore step up international cooperation in order to ensure
that the benefits of the free trade agreements will reach European SMEs, thus supporting the European recovery plan.
With regard to the dual transition, the “Small Business Priority” approach should be paramount when considering the impact of forthcoming and existing legislative initiatives. Small businesses will inevitably be affected by the digital and environmental transition and therefore need an SME-friendly framework to facilitate the adoption of new business models.
The European Chambers and the National Chambers of Commerce and Industry will continue to provide intensive support to businesses and entrepreneurs, encouraging the implementation of the policy priorities identified in the pan-European survey. The need to adapt quickly and react to the business environment after the pandemic has given rise to the parallel need for a coordinated European response. The President of the European Chambers, Christoph Leitl, said: “We call on EU and Member States' political leaders to work with the European Network of Chambers, acknowledging the unprecedented business environment. “
The President of CCCI Christodoulos Agastiniotis stated: “The above is absolutely true in the case of Cyprus where the need to diversify our economy and the adoption of a new business and investment model is imperative. We hope that in this direction the effective use of the resources of the National Plan for Recovery and Sustainability but also of the Cohesion Policy 2021-2027 will contribute decisively as well as the implementation of the long-term strategy for sustainable development “Vision 2035 Cyprus”.
What is needed is to move forward without delay and do what is required.
The CCCI declares its readiness to work with everyone to meet the challenges and take the necessary decisions and measures for the good of the economy and the place. “
source: BRIEF
