The confidence index in the economy fell in Iasi region in 2016, EY reveals

Businessmen in Iasi (eastern Romania) and neighboring counties are less confident in the positive development of the economy in 2016 than the national average – 51 percent of respondents in Iasi and surroundings are confident and very confident, compared to 61 percent of respondents nationally, “Business-2more-Business” barometer published today by EY Romania and Doingbusiness.ro shows.

The index of confidence in the economy in Iasi region decreased compared to last year, when 55 percent of the businessmen in the region said they were confident and very confident in the positive development of the economy.

“Local market in Iasi region is more weighted on the enthusiasm of economic development in the future. The region is still affected by the lack of investment in infrastructure, but also by slower development of local industries, which translates into a GDP lower than that of major cities in the country – EUR 6,000/capita in 2015 versus over EUR 10,000/capita in Cluj and Timis,” Bogdan Ion, Country Managing Partner, EY România stated. However, the respondents in Iasi are more confident in the industry growth where they are acting in the next six months compared to the national average – 64 percent are confident, and very confident in this positive development, compared to 59 percent of businesses across the country.

41 percent of respondents expect an increase of over 10 percent of turnover, compared to 53 percent a year ago, and only 25 percent expect a double-digit growth in profit in 2016, compared to 42 percent in 2015. In addition, 52 percent of respondents expect an increase in the number of employees this year, compared to 71 percent nationally.

Most local businessmen (57 percent) believe that investing more in marketing and communication could increase their sales in 2016 – significantly higher percentage than the national average – 41 percent.

57 percent of them complain about the bureaucracy (compared to 43 percent in 2015 and compared to 54 percent nationally) and 37 percent – of the local economy situation (compared to 25 percent in 2015 and compared to 15 percent nationally). On the other hand, the local business is less affected by the lack of political stability and public policy vision than the national average (32 percent of respondents in Iasi compared to 51 percent nationally).