The agriculture and industry are the sectors for which managers are not so optimistic.
After a setback in the second half of 2021, the CONFIDEX index grows to the biggest value measured, touching a maximum 47.8 points. The increase is general, but it is bigger in the transportation sector (+9,7 points) and services (+7,6) and more weighted in other sectors (from +5,4 to +5,9) due to the appearance of new crises and the impact of the war in Ukraine.
The war considerably affects the Romanian economy, especially by hindering the access to raw materials and to a series of resources that were easier to obtain in the region of Eastern Europe (Ukraine, Russia). The dependence on the Eastern European space is high (22%) and 6% of companies say they are economically dependent on it.
Almost 11% of business executives believe the Romanian economy has improved over the last year., while 27% of them believe the situation of their own companies has improved and 19% say the activity sector has improved.
Almost two thirds of company managers believe the global and European economies will worsen in the coming year and 71% of them expect Romania’s economy to also go down.
The analysis also shows the future seems to be marred by the raw materials crisis (86%) and the energy crisis (78%), which will boost production costs and trigger accentuated inflation (93%). Furthermore, 40% of managers believe the gross domestic product (GDP) will decline, therefore, we are headed towards recession.
According to managers, boosting sales (49%) and retaining employees (41%) must be put on the front burner. Two thirds of executives are in favor of increasing productivity and 73% would prefer to tap into new markets.