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Bucharest
December 3, 2022
BUSINESS

Business leaders are confident in economy’s evolution

A survey published yesterday by EY Romania, titled “A new vision of growth,” shows that business leaders in Romania are confident both in the growth of their businesses this year as well as in the overall evolution of the Romanian economy. Thus, 40 per cent of the companies included in the survey expect significant turnover growth in 2015, growth ranging from 10 to 31 per cent, while only 27 per cent of them expect moderate turnover growth ranging from 5 to 10 per cent. Likewise, 55 per cent of the respondents are confident and very confident in the country’s economic evolution.
These are the conclusions of EY Romania’s survey on the Romanian business environment’s perceptions in the second half of 2015. The analysis is based on a questionnaire that analyzes the perceptions of 328 top company executives from various industries. 14 per cent of the respondents represent companies with turnover in excess of EUR 50 M, 10 per cent companies with turnover of EUR 10-50 M, 38 per cent companies with turnover of EUR 1-10 M and 38 per cent companies with turnover of less than EUR 1 M. 72 per cent of the companies represented are Romanian companies, the remaining 28 per cent being the subsidiaries of foreign companies.
Profit growth estimates are relatively similar to those registered at the start of the year: 35 per cent of company executives estimate that their profit will be over 10 per cent higher this year, while only 12 per cent of them expect a drop in profitability in 2015.
Investment growth eased slightly as we approach the end of the year. Thus, only 27 per cent of respondents still expect over 10 per cent growth in investments, compared to 36 per cent of respondents at the start of the year. The highest investment growth estimates are registered in the production, constructions, real-estate and transport domains.
Just like in the case of investments, as we approach the end of the year the estimates on growth in the number of employees become moderate compared to February 2015. Still, 58 per cent of respondents expect the number of employees to grow, a lower percentage compared to that registered at the start of the year when 71 per cent of company executives were planning to hike their number of employees.
Growing domestic demand confirms its role as growth engine
At the start of 2015 business leaders in Romania were expecting the demand to become once more the growth engine for Romanian businesses, according to the answers given in the survey’s February edition. However, while at the start of the year only 2 per cent of the respondents were expecting strong demand growth, and 64 per cent were forecasting moderate growth, at present 27 per cent of respondents expect strong demand growth and only 40 per cent are still banking on moderate growth.

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