Investments in Romania meet the US CEOs’ expectations, AmCham report shows

Despite the weak reviews of policies in key sectors, 88 percent of CEOs of US companies, members of AmCham Romania, said that their investments meet or exceed their expectations, a survey included in the 2nd edition of the Competitiveness Report of the American Chamber of Commerce in Romania, released on Tuesday, reads.

“Romania has progressed significantly in recent years, but still has to make several reforms in areas such as infrastructure and administration to create a more friendly business environment,” Dean Thompson, Deputy Chief of Mission, U.S Embassy, stated, attending the report launching event.

The report highlights Romania’s performance compared to the average EU28, while benchmarking it against 6 other countries in the region (Austria, Bulgaria, Czech Republic, Hungary, Poland and Slovakia) and also provides a number of policy learning points and recommendations at the end of each chapter.

Moreover, 95 percent of CEOs said that their companies’ investments in Romania will grow or will remain the same, and these plans means also positive prospects related to increased number of staff.

The same report reveals that Romania recorded a 4.5 pc annual growth of GDP/capita, but in 2014, it represented only 30 percent of the European Union (EU) average.

According to the document, since the previous Report, released by AmCham in 2011, Romania has seen three years of intense economic development, as well as progress in several economic sectors and public policies, such as labor legislation, corruption, inflation.

“The alarming trend is recorded in demographic indicators – population statistics show a steady decline of Romania’s population since 1990 – only in the last 10 years the drop was about 7 percent,” the report reveals.

The survey conducted among CEOs of the companies, members of AmCham Romania, showed that the lack of infrastructure ranks the second in the obstacles list to business, transport infrastructure representing the biggest disadvantage for Romania.

“The educational level remains one of Romania’s strengths, especially in terms of language skills and science,” the Competitiveness Report points out.

From a fiscal perspective, Romania is on a much better position than the EU average in terms of government debt and budget deficit. However, the tax reform implemented this year is expected to put additional pressure on Gov’t debt and budget deficit.

In his turn, Costin Borc, Vice Prime Minister and Minister of Economy, Commerce and Relations with the Business Environment, the guest of honor of AmCham Romania event, stated that Romania needs a long term vision, to provide stability, trust, and therefore, in the government session on Wednesday, March 30, 2016, it will try to approve the establishment of a Competitiveness Council, which will help achieving this goal. The official noted that although Romania is still suffering in terms of perception, of doing business, here is a positive thing.

 

AmCham Romaniaannual growth of GDP/capitabudget deficitCEOsCommerce and Relations with the Business EnvironmentCompetitiveness CouncilCompetitiveness Reportcorruptioncostin borcDean ThompsonDeputy Chief of Mission U.S Embassygovernment debtinflationlabor legislationobstacles listtransport infrastructureVice Prime Minister and Minister of Economy
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