The confidence index has reached 52.5, the highest value of the last four years. Thus, against the backdrop of declining inflation, GDP growth and heightened optimism in the local business environment, as well as internationally, when it comes to economic performance, the index value has surpassed the previous peak of 50.2, recorded in the first half of 2023.
The figures are an indicator of the resilience, flexibility and adaptability of the Romanian business environment to the abrupt changes in market conditions faced in recent years, starting with the COVID-19 pandemic, followed by rising energy prices, then the outbreak of the war in Ukraine, fiscal changes – and the ongoing wave of inflation that has not yet abated.
“Year after year, Romanian entrepreneurs’ resilience and confidence in their own capacity for development, as well as that of the Romanian economy, continue to grow. Thus, even amidst multiple crises the economy has faced, caution remains dominant and there is nevertheless increased optimism about the Romanian economy. This is due, on the one hand, to positive signals at macroeconomic level, such as decreasing inflation and GDP growth, and on the other hand to the business mindset, which has not stalled, but rather sought solutions and new opportunities to remain relevant in the market,” stated Andrei Cionca, CEO & Co-founder of Impetum Group, which conducted the survey.
According to the survey, companies in the services sector are the most optimistic (confidence index of 57.1 at the sector level), followed by IT (53.7) and construction and trade (both sectors with a confidence index of 52.6). At the other end, with a more cautious approach, are businesses in agriculture (48.5), energy (49.8) and industry (51.3).
The latest CONFIDEX survey also reveals that 80% of managers have a good or very good opinion about investors (39% of the current survey participants vs 31% in the survey conducted in the second half of 2023.
Managers believe investors contribute to the financial stability of the companies they invest in (62%), but they are also perceived as solely oriented towards achieving higher profits (59%). Additionally, 57% consider that investors are skilled in business.
Optimism is firmly grounded in reality, with Romanian managers paying close attention to the risks that could affect the economy, such as: exacerbating labor force crisis, pressure to increase wages, declining sales and inflation.
In the current market context, the main priorities of Romanian managers are to boost sales (48% of them), retain employees (26%), improve customer relationships (26%), access financing (22%), but they also target digitalization and automation (21%).
The main opportunities considered by Romanian businessmen include easier access to international markets (12% of the current survey participants vs 11% in the survey conducted in the second half of 2023), market demand growth (12% vs 18%) and digitalization and technological advancement (12% vs 6% in the previous survey). Additionally, product diversification, accessing European funds or subsidies and workforce are other significant opportunities pursued by Romanian entrepreneurs.