Business expectations plunge as credit, inflation fears rise

Business confidence has deteriorated in recent surveys, with enterprises bracing for tougher trading conditions than in 2025. The latest survey points to mounting cost pressures, particularly on materials, utilities, rent and transport at a time when liquidity constraints and slower government spending are already weighing on the private sector.

Firms expressed muted optimism over increasing costs of borrowing across all markets, with expectations of monetary policy tightening expressed in increased interest rates. These concerns are founded on last year’s increases in lending rates by all commercial banks, which increase the costs for new and existing loans for firms.