Romanian executives, more confident in companies’ prospects, less optimistic about economy
Romania has seen the most significant growth in sentiment about companies’ financial outlook, according to the fourth edition of the Deloitte Business Sentiment Index (DBSI). 63 percent of interviewed executives shared optimism - an almost 48 percent increase since the first survey in September 2009 and more than three times higher than the previous edition, issued in April.
“However, while they are bullish about their companies’ own potential on the market, there are still concerns about the health of the economy as a whole,” said George Mucibabici, Chairman Deloitte Romania.
Most companies have completed the stage of cost-cutting measures and immediate remedies to the financial downturn; more and more executives are now thinking about the future, planning to increase revenues, add new products and services, or expand personnel, according to Mucibabici.
The sentiment is shared across Central Europe, driven by Slovakia and Poland. Executives are increasingly optimistic about the economy but positive sentiment has not spread to all quarters.
Romania also noted the biggest positive change in sentiment about credit availability, 87 percent of executives feeling that credit is available now, compared to 53 percent, six months ago. This is the largest share of optimists among the six countries surveyed, which include Poland, Hungary, the Czech Republic, Slovakia and Croatia.
Separately, Romania also showed a consistent positive trend in sentiments toward future revenues from sales, with the number of optimists increasing from 38 percent (September 2009) to 60 percent. Similarly, Romania recorded an increase in positive sentiment about new launches as well: 60 percent of respondents believe that they will be launching new products or services over the next year, a level of optimism similar to the one recorded in September 2009.
For the first time since the launch of the survey, the employment outlook for Romania has considerably improved, with 23 percent of respondents admitting they are considering expanding their workforce, up 15 percent since September 2009.
editor@romania-insider.com
