89 pc of Romanian businessmen are confident in their business growth this year, EY study reveals

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89 percent of business people in Romania are confident in their business growth this year, while only 7 percent expect a decreasing turnover and 4 percent estimate a stagnation, the EY’s ‘A vision for growth’ 2016 study shows. Out of those who expect an increase, 41 percent forecast a significant positive evolution (a growth of over 10 percent).

“Romania is going through a good period from the economic point of view. According to IMF forecasts, Romania will record this year the highest economic growth in Europe. However, the results of this EY study – fall edition reflects the concern of Romanian executives for the Romanian economic growth model, strongly based on consumption. Thus, 98 percent of them indicate that there’s a need for a country strategy to ensure to Romania a sustainable growth and catching up the structural gaps against Western countries,” Bogdan Ion, country managing partner, EY Romania, said.

The expectations on profit’s evolution are also positive – 81 percent of companies forecasting a growth in profit in the current year. Almost one in three companies expects an advance of more than 10 percent of this indicator, while 48 percent estimate to record increases which will not exceed this level.

The upward trend of sales will be supported by the investments increase, 64 percent of the companies planning their growth by 5-30 percent by year-end.

For financing, the surveyed companies use especially their own resources, the reinvestment of profits and loans from related companies of the same group, followed by bank loans, the EY study also notes.

Moreover, 57 percent of respondents are confident in the Romanian economy evolution in the next 12 months.

EY study is based on the answers of 267 top executives and analyzes their perceptions about the prospects of the business environment in Romania in 2016 and 2017. 13 percent of respondents run companies with a turnover bigger than EUR 50 million, 27 percent — companies with turnover between EUR 10-50 million, 41 percent – between EUR 1-10 million and 19 percent – under EUR 1 million.

 

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