EY Barometer: Investments plans of 85% of the Romanian companies, questioned due to fiscal uncertainty

According to the latest EY Barometer, 92% of the local business leader don’t endorse the growth pattern of the Romanian economy base don consumption increase, while 99% companies support a country strategy orietend to a sustainable growth. For 74% of the companies in Romania, acceleration of the organic growth and inevstments in the existing operations represent top priority.

The Romanian Business environment Barometer shows that 45% of the local businessmen are pesimistic about the evolution of the Romanian economy in the upcoming 12 months.

The study shows that the percentage of the optimistic stances is on decline compared to the previous editions, revealing concerns about the economic growth based on consumption, about the inflation pressures and fiscal and law uncertainties

The EY report, conducted in partnership with DoingBusiness.ro, is based on an online survey to which 458 businessmen in various sectors have replied.

8% of the respondents have a turnout higher than EUR 100 M, 9%-ranging from EUR 50-100 M. 34 per cent post a turnout raging from EUR 10 M to EUR 50 M, while 44 pc-EUR 1 M-EUR 10 M and 5 pc below EUR 1 M.The Romanian companies are less hopeful about the evolution of the local business environment, with the highest gaps popping up on the market stability and the evolution of the investments, most probably due to the law and fiscal instability in Romania.

Companies’ managers consider top three strategic priorities for the managing boards: acceleration of the organic growth and investments in the existing operations (74%), cash release and improvment of the working capital (55%) and digital transformation (49%).

„Autumation, digitalization and the economic and political volatility have dominated the agenda of the big companies in Romania in the past year. These changes determine companies to reconsider their vision related to the growth pattern. To be part of the change is a need for all business leaders in Romania,” said Bogdan Ion, Country Managing Partner, EY Romania.

Among the challenges of the business environment, the top three ones would be: fiscal and legislative uncertainty (80%), the lack of political stability and vision of the public policies (69%) and bureaucracy (46%).

Under these circumstances, 85% of the local companies see their investment plans for this year jeopardized. Only 13 pc of them say their investments are not affected, while 2 pc cannot estimate the impact.