The confidence level of the Romanian business environment in market development has strengthened early this year, recording the highest value since 2012, EY reveals.
This level, monitored twice a year by EY’s barometer on business environment, is reaching now to 60 percent. Moreover, the percentage of those very confident in the market growth prospects was multiplied almost 2.5 times in the last two years, reaching 17 percent of business people.
Meanwhile, the responding companies are proving more confident in their own development than in the growth of the sector in which they operate. Businessmen who believe that the sector will record a positive trend (60 percent) are less compared to those who believe that their business will increase (77 percent). Basically, the companies representing the difference of 17 percentage points are confident of going against the current, an increase despite the fact that the market in which they operate will not follow the same trend.
“The consumption contribution stood at 4 percent, while fixed capital’s contribution by 1.8 percent, was offset by the net effect of exports and imports of goods and services -1.6 percent. This year and in the coming ones, we can grow following a balanced way and taking under control the risks of unsustainable economic development or we can repeat the type of growth in 2004-2008,” Bogdan Ion, Country Managing Partner, EY Romania stated.
Business people have already decided to boost investments. Basically, only 4 percent of the companies will decrease the investment level in 2016, 15 percent will mentain the level from the previous year, while 81 percent will increase it. 45 percent of them have a growing budget by 5-20 percent, and 11 percent will have an investment budget by more than 20 percent than 2015.
Amid investments’ upward trend regarding businessmen intentions, cutting costs are no necessarily a priority, improving productivity becoming the focus key for the business environment this year (27 percent of respondents).