Economic climate moderates: Survey

Saturday, 29 July 2023 01:23 - - {{hitsCtrl.values.hits}}

Pioneering business magazine LMD reported, in its July edition, that “businesspeople are seemingly hopeful of a turnaround in economic fortunes.”

NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya rued the fact that despite a drop in inflation, there’s been little if any bearing on the price of goods and services.

She noted in the magazine: “Even though there is a hint of improvement, its effects are still not felt by businesses – or the population, who are still struggling to make ends meet.”

LMD added that: “The toll on businesses appears to be from high taxes, which are taking precedence over both inflation and interest rates – perhaps in view of their easing in recent weeks.” An increase of 7% (to 29%) was recorded in June among business executives who feel the economy would ‘improve’ in the next 12 months, LMD reported, adding that: “In the last six months, the highest expectations of an improved economic environment were expressed in April (34%).”

It continued: “However, the level of optimism in April was short-lived – in June, nearly half (49%) of the sample population said they believe the economy ‘will get worse’ – that’s a whopping 14 percentage points higher than in April and one percent more than in May (48%).”

At the beginning of the year, two-thirds expected a worsening of the economy – so in that sense at least, sentiment has improved, it added.

Media Services, LMD’s publisher, said the latest edition of the magazine will be released shortly. Its digital edition is shared on WhatsApp and the publisher’s social media platforms.

The magazine’s Cover Story features ‘Sri Lanka’s Most Loved Brands’ – a ranking compiled Brand Finance.