The FIC members, for the periods December 31, 2013, June 30, 2014 and December 31, 2014, note their sentiment as follows: 62 percent of the respondents now expect their revenues to grow with 14.28 percent, expecting a significant growth. This compares well to December 2013 expectation of 51.5 percent of growth and a small group of respondents (3.85 percent) that expected significant increase in their revenues. This also compares slightly better than June 2014 expectations.
Similarly, compared to June 30, 2014, the number of respondents expecting contraction in their revenues decreased from 20 percent to 8.57 percent in December 31, 2014. However, this remains slightly higher than the expectation of December 31, 2013 of 6 percent. Companies that felt their business will remain unchanged this year, has gone down from 39.3 percent in December 30, 2013 to 28.5 percent. However it is still higher compared to June 30, 2014 of 19.2 percent.
One of the key changes is respondents’ take on domestic market growth. Respondents now expect growth to come from domestic market slightly more than export market. The respondents’ expectation about contraction have subsided quite significantly from a year ago and the number of respondents expecting contraction is at 8.65 percent. All in all, this point towards increased sentiment and companies are expecting to have an increase in their business activities more than a year ago.
No major change in workforce plan is noted with 53.84 percent respondents expecting similar workforce as in prior year compare to 55.5 percent in prior year. However, 28.2%percent are now planning a small increase, compare to 24 percent in prior period. Increase revenue growth expectation coupled with slightly higher albeit not a considerable change, in respect of capital investments or labor intake, indicates increased confidence in economic stability and growth prospects but still points towards underutilized asset base that has room to service even a higher demand than present, as well as the need to carry out further concerted efforts to harness the full potential of Romanian economy. Respondents in the banking sector felt this quite extensively and note that “in banking there are several initiatives with significant negative impact on the sector”.
Also, a large number of respondents, 57.5 percent feel that the legislative environment and administrative effectiveness has not changed since last year. Only 15 percent of respondents feel that it has moderately improved.
FIC has continuously provided input for policy makers in their effort to achieve a better business environment that will result in improved economic results for Romania. The Foreign Investors Council represents a significant business segment in respect of investments in Romania and its members account for approximately two thirds of all total foreign investments in Romania. (source: business-review.eu)