+ 93pc of business leaders in Romania are confident that businesses will grow this year
A total of 93pc of business leaders in Romania are confident that businesses will grow this year, 87 percent of companies will increase wages in 2016, but 44pc of respondents do not forecast a growth higher than 5pct, a survey by EY Romania sent to Agerpres on Thursday shows. In addition, according to the survey, 35pc of employers are expecting a modest increase in the number of employees (under 5pc) and 36pc state they will hire 5-30pc or more.
Only 5pc of managers questioned expect turnover to decrease and 2pc of them expect stagnation. Out of those who expect growth, 41pc expect a significant positive development (growth above 10pc), down from 48pc one year ago.
Estimates on profit growth are positive, with 32pc of companies expecting an increase in profitability in excess of 10pc in 2016.
This trend will be largely supported by investments, given that 81pc of respondents state they will increase investments in 2016, while only 76pc were planning this at the beginning of 2015.
These investments will be financed by own resources and reinvestment of profits (46pc), followed by bank loans (34pc).
The EY study is based on the answers provided by 421 top executives between January 26 – February 8 and surveys their perception on the business environment in Romania in 2016. A total of 23pc of respondents manage companies with turnover exceeding 50 million euros, 28pc – companies with turnover between 10-50 million euros, 35pc – between 1-10 million euros, and 14pc – under one million euros.
EY is one of the largest providers of professional services worldwide, with 212,000 employees and offices in over 150 countries.