Investment over the last three years was the right amount, only 12% of firms are finance constrained. However, the investment outlook in Romania is mixed, the survey found.
Nearly three quarters of firms report that they have invested the right amount over the last three years. At the same time the share of firms that think they have invested too little is higher in Romania than among EU peers.
The survey also reveals that firms with too little investment rank their capital stock to be of lower quality – implicitly signaling investment backlog. Overall, Romanian companies find their capital stock of lower quality compared to EU-peers.
Firms in Romania mostly invest in tangibles and relatively few resources go into Research and Development and employee training. The investment outlook in Romania is mixed and the productivity levels of Romanian firms remain well below EU average.
About 12% face finance constraints and reliance on internal financing sources remains high. While access to finance is not an issue in general, there are some firms that face greater difficulties to successfully tap external financing than others. High reliance on internal sources typically poses bigger obstacles for small and innovative firms.
While general uncertainty tops the list of impediments to future investment in the EU and Romania, the share of Romanian companies considering the country’s transport infrastructure as an impediment stands out – about 60% see it as an obstacle compared to 38% in the EU. Also business regulation and the limited availability of skilled staff pose impediments.
“When credit finances efficient investment, it contributes to an increase in potential output. In particular for small and medium-sized enterprises, the prudent acceleration of the credit engine would be a great opportunity for sustainable development,” said central bank governor Mugur Isarescu.
The country overview presents selected findings based on telephone interviews with 476 firms in Romania in July-October 2016. The survey is part of the annual EIB Group Survey on Investment and Investment Finance (EIBIS) is an EU-wide survey of 12,500 firms that gathers quantitative information on investment activities by both SMEs and larger corporations, their financing requirements and the difficulties they face.
The European Investment Bank is the long-term lending institution of the European Union owned by the EU member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.