Horváth study : Romanian executives prioritise financial stability over innovation

Romanian executives place significantly greater emphasis on financial stability and risk management compared to the global average. According to the sixth edition of the “CxO Priorities” study conducted by management consultancy Horváth, most executives in Romania rank this topic as their top strategic priority, while globally it only comes in seventh place. This result reflects a more cautious approach among local business leaders, in an economic context marked by volatility, high inflation, and persistent macroeconomic pressures.   After financial stability, Romanian companies prioritise cost optimisation and operational efficiency, as a response to rising production costs, energy price volatility, and demand uncertainty. These pressures are prompting the private sector to accelerate process optimisation initiatives and strengthen competitive positioning.   Digital transformation and cybersecurity rank third and fourth among the strategic priorities of Romanian companies, signalling that technology is becoming a key pillar of resilience and competitiveness. Although the maturity level of artificial intelligence (AI) initiatives remains low, the potential is significant: 41% of companies have no active projects in this area, while another 48% are only at the early stages of integrating AI into decision-making processes.   At the same time, Romanian executives are optimistic about the productivity gains expected from AI in the next three years. The most substantial improvements, between 18% and 20%, are anticipated in IT, operations, and sales.The shortage of skilled labour is perceived much more acutely in Romania compared to other Central and Eastern European countries.   The challenges are particularly pronounced in the services sector, where the lack of digital and ESG competencies amplifies recruitment and retention difficulties. This context is driving companies to invest in accelerated training programmes and internal process reorganisation.   In terms of profitability, operating profit margins (EBIT) are expected to remain stable or slightly increase for most Romanian companies. The strongest growth is anticipated in banking and financial services (+33.5% in 2025 vs. +24.3% in 2024), while solid profitability continues in the industrial equipment and automation sector (+23% in 2025 vs. +22.5% in 2024). Declining profits are expected in construction, tourism, transport, and logistics, while the automotive and retail sectors remain those with the lowest profit margins (around 1%).   Investment strategies are focused 55% on the local market, followed by Eastern Europe (42%), North America (2%), and South America (1%). This concentration leaves no investments planned for countries such as India, China, Australia, Western or Southern Europe, or Africa.   Compared to global trends, Romania stands out by placing risk management and financial performance at the top of executive agendas. At the same time, innovation and R&D rank only eighth locally, compared to third place globally. This gap reflects a strong focus on financial stability and risk control, rather than innovation-driven growth.   When it comes to the main risks concerning Romanian executives, inflation ranks first (52% for manufacturing companies, 65% for services), followed by interest rate changes (in manufacturing) and the shortage of skilled labour (in services). “Romanian executives are adopting a more cautious strategy than their counterparts in other countries, focusing on financial performance and reducing risk exposure. This reflects the local economic realities and growing pressures on the labour market and profit margins. At the same time, digitalisation and cybersecurity are becoming increasingly important, signalling a transition towards more resilient and agile business models,” said Maria Boldor, Partner and Managing Director, Horváth Romania.   The CxO Priorities 2025 study was conducted between May and June 2025, based on interviews with over 1,000 CEOs and board members from 33 countries. In Romania, 63 executives were interviewed, 73% of whom hold CEO positions.