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ENGLISHGerman Companies in Romania Cannot See the Light at the End of...

German Companies in Romania Cannot See the Light at the End of the Tunnel!

The economic situation of companies with German capital in Romania deteriorated this autumn, and most of them are pessimistic about the future as well, according to the results of a survey conducted by the Romanian-German Chamber of Commerce and Industry (AHK Romania) in October 2023.

The main reasons are related to the uncertainty caused by geopolitical risks and the decrease in demand on the background of high inflation rates and interest rates, and also the lack of qualified personnel and the evolution of labor costs.

The survey, conducted between 25 September – October 20, 2023, evaluates the economic situation, as well as the business status of companies and provides an overview of the most important economic risk factors from the perspective of the enterprises.

Only 17.1% of the companies surveyed expect Romania’s economic situation to improve over the next 12 months, compared to 22% in spring, while 38% of these believe that it will remain unchanged.

German businessmen are worried about the evolution of their investments in Romania

The majority, 44.7%, believe that the economic situation will deteriorate, a threshold well above the spring 2023 results: 26%.

Regarding the evolution of their own company, the majority, 46.1%, believes that it will remain unchanged, while 17.7% expect their activity to deteriorate in the coming months (and there is an increase from the spring 2023 survey: 15.9%).

The number of those who expect their businesses to improve has shrunk: only 34.2% of companies remain optimistic.

All of this has led to a reduction in investment plans, and the intention to employ more people has decreased.

More than 30% of respondents say they will reduce investments, so the volume of these remains unchanged for 38.2%, while 6.6% of the companies surveyed do not plan any ventures for the next 12 months.

Only a quarter of respondents still plan to increase investment locally (six months ago their share was 39.7%).  Most – 47.7% of those who consider investing – plan to invest in production and manufacturing, as well as sales and marketing.

In addition, the number of employees remains the same in most companies (autumn 2023: 57.3%, compared to 42.4%, as recorded in spring 2023), but the number of companies willing to make new hires has fallen significantly, from 41.7% this spring to 26.7% this fall.

Vasile Trofim
Vasile Trofimhttp://canal33.ro
Vasile Trofim a intrat in presa la scurt timp după 1992. A început mai întâi ca fotoreporter-colaborator la Evenimentul zilei, in vremea în care director era Ion Cristoiu, a contribuit la cresterea săptămânalului „Expres Magazin” si a ziarului bucureștean „Ora”. Prins in tumultul vieții economice a ultimilor ani a scris pentru publicația online revista-patronatelor.ro. Se declară un fan necondiționat al stilului jurnalistic promovat de regretata Jeana Gheorghiu, a cărui școală de specialitate a și urmat-o dealtfel.
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