June 6 (SeeNews) - Romania's economy will deteriorate next year but investor interest is growing, the Romanian-German Chamber of Commerce and Industry, AHK Romania, said on Monday, citing the results of a survey conducted among 56 German companies.
Over 50% of German companies which participated in the survey estimate that Romania's economic development will 'worsen considerably' in the next 12 months, while only 10.7% expect an improvement, AHK said in its 2022 Business Outlook.
Some 37.5% do not expect any change in the economic situation in Romania in 2023.
"We are living in very difficult times and we find ourselves once again in a paradoxical situation. Despite the obviously negative economic outlook, companies still want to invest in Romania and, especially, to increase the number of their employees. Despite the crises, most of the surveyed companies are doing well today," AHK Romania general manager Sebastian Metz said.
Some 51% of surveyed German firms active in Romania said that their current situation is good, down from 67% which said the same thing last year. Over 37% of respondents characterized their current situation as satisfactory, while the remaining 10.7% said that they are going through a difficult situation.
Looking ahead, 40% of respondents think that their performance will improve in the next 12 months, while 10% believe that their performance will be weaker in the coming year and 48% foresee no change.
Thus, over 25% of polled German companies plan to increase investment in the next 12 months, 10.7% will make no investments, while 19.6% plan to invest less. Also, 44.6% do not plan any change in their investment plans.
Some 41% also plan to make new hires in the next 12 months, while only 19.6% intend to cut jobs. For 39% of polled companies, the number of employees is likely to remain stable in the following year.
German companies active in Romania see rising commodity and energy prices, staff shortages and labour costs as the main risk factors that influence their development.
Most surveyed companies believe that the increase in energy and raw material costs is a short-term consequence of the war in Ukraine. Supply chain disruptions, logistics problems, as well as the lack of raw materials and services are also seen as consequences of the current crisis.
AHK polled 56 companies out of which 62.5% are active in industry and construction, over 23% in services, and the rest in trade. The survey took place during March-April.
AHK Romania was established in 2002 and currently has over 550 members.
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