Business Confidence Index shows pessimistic results www.montsame.mn
On April 27, the Mongolian National Chamber of Commerce and Industry (MNCCI) presented results of 'Business Confidence Index 2020' Survey, which aims to assess businessmen’s confidence in business environment by reviewing status and further changes of businessmen and citizens’ expectations.
The 2020 Business Confidence Index had shown pessimistic results from the last four years’ performance or -0.28. In specific, the pessimistic results can be linked to unfavorable condition of foreign market, decline in export growth and foreign direct investment, disruption in normal operation of entities and reduction of their income and profit.
In 2020, the four main indicators of the business confidence index have decreased compared to 2019. Particularly, businessmen’s confidence in business environment in construction, agriculture and service sectors was lower than the national average. Businessmen of construction and trade sectors, who were involved in the survey, expect that business environment would deteriorate in 2021. The participants also deem that financial situation and decline in product demand would affect adversely to their business activity.
The BCI survey is conducted with four main indicators such us general situation of business environment, income of enterprises, major problems of macro economy, favored and ill-favored factors to business environment and challenges. The survey methodology has been changed this year and is calculated according to the international methodology for the main sectors of the economy.
The BCI survey was conducted in March of this year in Ulaanbaatar city and rural areas with involvement of over 1400 enterprises. By the areas of business operations, 15 percent of the participants for survey were in manufacturing sector, 14 percent in construction, 10 percent in agriculture and 37 percent in service sector. 76 percent of the participant enterprises have income up to MNT 1 billion while over 95 percent of them have employees up to 200.
During the presentation of the survey result, a discussion was held on economic situation and trends. At the event, businesses expressed their views on issues related to tax and social insurance premium. Moreover, President of the MNCCI O.Amartuvshin stressed that the chamber would pay attention to reviving the economy in a way of raising issues including tax, social insurance, abnormal loan amount and loan forgiveness for entities to the Parliament and the Cabinet.
Since 2000, MNCCI conducts the survey, bringing the results to the decision-makers and making the outcomes reflected in government’s policies and actions.
Published Date:2021-04-28