The survey shows there is moderate optimism among investors, as it is impacted by uncertainty and current challenges such as the energy market crisis, the military conflict in Ukraine, the inflationary pressures affecting supply chains and customer demand, including the erosion of end–user disposable income, whose possible effects were highlighted in the May edition of the Inflation Report published by Romania’s central bank.
“Companies seek to invest in Romania, with half of the respondents estimating that for this year the planned investments are at similar levels to 2021. Also, 40% of respondents say they plan to invest larger amounts compared to the previous period. The central bank reported foreign direct investments (FDI) of EUR7 billion for 2021- the best year for foreign investments,” according to FIC representatives.
“Over 50% of the respondents have plans to expand their workforce and 37% keep these plans for the next 12 months at levels similar to 2021. The sentiment regarding the workforce remains accentuated, but, unfortunately, the perception of the availability of adequate staff remains reserved, and only 45% of respondents believe that labor force is competitive. The results also capture the tendency for hybrid work, with 45% of companies estimating that more than a quarter of their employees will continue to work from home,” FIC also said.
The trend remains constant with previous editions with poor results when it comes to infrastructure, transparency and coherence in the application of public policies, reducing bureaucracy and the burden of regulations.
“65% of respondents to the spring 2022 edition believe that these areas remain uncompetitive and that reforms are needed to close the gap between Romania and other European countries. PNRR and the operational programs represent an opportunity to support and implement the needed reforms through EU funds allocation”.