Macro outlook is dire: Survey

Wednesday, 18 May 2022 00:21 - - {{hitsCtrl.values.hits}}

Leading business magazine says that “corporates continue to view the economy in an extremely pessimistic light,” adding that the economic crisis has led to extreme pessimism in business circles with expectations that the worst is yet to come in the wake of the unprecedented forex crunch.

“With the youth spearheading the nationwide demonstrations and expressing their concerns, the voice of the people has started to rise and be heard,” notes Nielsen Director – Consumer Insights Therica Miyanadeniya.

She continues: “April has been a pivotal month; a turning point where the people have taken things into their own hands. The patience of the people has grown thin; and the realisation of what is happening has hit hard on the greater population…”

A massive majority of 87% of poll respondents now expect the national economy to worsen further, which is two percentage points higher than in the previous month. As far as comparisons go, the level of economic pessimism stood at 55% six months ago, LMD notes.

And as for survey participants who express optimism, a mere 3% (as in March) say the economy will ‘improve’ in the coming 12 months while 10% believe it will ‘stay the same’ during this time (from 12% in the preceding month).

There is more bad news on the investment front too with last month’s eye-opening majority of 92% of businesspeople who deem it to be ‘poor’ or ‘very poor’ blowing out to 97%.

Media Services, LMD’s publisher, says the May edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

Its exclusive Cover Story features DFCC Bank’s Chief Executive Officer Thimal Perera who says that “the crucial need of the hour is policy certainty”.

For the full story, log onto www.LMD.lk.