Flanders: Around 8 in 10 companies fears Russia-Ukraine crisis to bring negative impact to economy

In Flanders, around eight out of ten companies (82%) per cent has indicated that current Russia‘s full-scale military operation in Ukraine is going to have a negative impact on the economic activities.

As per the details provided by the chamber of commerce and Industries Voka, the war will affect the activities of all the companies.

The Prime Minister of Belgium named, Alexander De Croo, mentioned that the war’s consequences would be felt in Belgium. Along with this, a survey has been organized by the Flemish network of enterprises (Voka) with over 400 companies has discovered that the increase in the cost of energy as well as the raw materials were the most worrying elements.

The managing director of Voka named Hans Maertens mentioned, “After two difficult coronavirus years, our economy is immediately confronted with a new major and global crisis. Shortages of raw materials are threatening everywhere.”

He said that the increase in the energy prices and the record prices for the basic raw materials borne by the businesses with result in inflation constantly rising, leading to automatic wage indexations.

Hans Maertens further said, “This will increasingly put a noose around the necks of our companies.”

Approximately one out of six companies have answered the response to the survey that they are lowering their recruitment plans for the new staff members, while one in four is already reducing their investment plans.

Of the companies that are still looking to recruit, 89 per cent indicated that they are facing problematic situations in looking out for suitable personnel. “The tightness of the labour market, therefore, continues unabated.”

Along with this, the price increases are also putting pressure on the companies margins as many have seen their inputs costs that have been increased by 22 per cent on average compared to normal levels.

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