March 30 (SeeNews) - Fifty-two percent of Romanian CEOs forecast revenue growth in 2023, while 27% expect that their companies will not be in the market a decade from now unless they transform, global consultancy firm PwC said on Thursday.
The workforce and skills shortage is the most important factor that will affect long-term profitability according to 70% of the respondents in PwC CEO Survey 2023, PwC said in a press release.
Other threats to long-term performance include changing consumer preferences, regulatory developments, the emergence of new technologies, the transition to new energy sources and supply chain disruptions.
In the short term, 73% of respondents plan to invest in process automation, new technologies and employee development.
“The survey also gives us good news, as it is encouraging that 60% of the investments they make are aimed at reinventing companies, and 40% are focused on current consolidation," Dinu Bumbacea, country managing partner at PwC Romania, said.
Most Romanian CEOs (48%) see inflation as the main threat to business development in 2023, followed closely by geopolitical conflict (42%) and macroeconomic volatility (38%). Over a five-year period, risk assessments change, with macroeconomic volatility being perceived as the main threat, followed by inflation and geopolitical conflict.
In order to boost revenue growth and cut costs, 92% of Romanian executives are already reducing operating expenses or plan to do so in the next 12 months.
Around two-thirds of Romanian CEOs aren’t considering layoffs, with three in five not even mulling a hiring freeze. The other third of respondents said they have already started a layoff programme or are planning to do so, compared to 39% of CEOs globally.
Fifty-two percent of Romanian executives plan to maintain their pace of investment, while 44% have already decreased or plan to decrease investments.
Romanian executives still see Germany as the most attractive foreign market for growth opportunities, echoing their preferences from several other annual surveys. The U.S. ranked second, mirroring the previous year’s results, followed by France, Austria, Moldova, Hungary and Bulgaria, up from previous positions. China dropped from third place in 2022, to second last. Poland re-entered the top-ten most important export markets, while Russia dropped out of the ranking, PwC said.
PwC said in January that Romanian CEOs feel more confident about their national economy than the global economy, with 62% expecting a local slowdown and 75% anticipating a global decline.