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AHK Romania : The present situation of the companies is good, the perspectives stay uncertain

December 13, 2021

Challenges for the companies are still numerous after two years of corona pandemics, but the present situation of the companies have significantly improved against last week, shows the present survey made by AHK Romania in October 2021.The present situation of the companies with German capital in Romania has improved and the majority considers that this is ‘good’ (over 67%, 2020:35%). Over 22% of the interviewees state that the situation of the company they represent is satisfying, and the rest of 10% think that the situation is difficult (2020: 9.6%).As regards the evolution of activity, the companies are more optimistic during this autumn. Thus, only 10% think that their activity will decrease over the next twelve months (2020: 25.5%). More than 42% expect improvement (2020: 26.6%) and 47% do not see any change.The local economic evolution over the next twelve months is unchanged for half of the interviewees. 20.4% expect an improvement (2020: 24.4%) while the number of pessimistic people has decreased: 30.6% see a deterioration of the evolution of the local economy situation. (2020: 44.7%).For the next twelve months, 36.7% of the companies propose higher investment expenses (2020: 11.7%). Over 32% consider that these expenses will not change (2020: 40.4%) and only 18.4% see smaller investments (2020: 33%). The balance (the difference between the negative and positive answers) goes to 21points after the minimum of last year (minus 21). As regards the factors of economic risk, the increase of prices for raw materials and energy, as well as the costs for workforce and the lack of qualified personnel represents the highest worry for the companies. The present governmental crisis is not reflected in the survey, as this started after the survey was organized.Even so, 41.7% of the interviewees consider that the framework political –economic conditions as risk factors. From our daily interaction with the representatives of the companies, we can confirm this, and this risk factor could increase significantly due to the present events.‘The present political situation determines uncertainty for the German companies in Romania. The present debate regarding the fiscal changes is not favourable. We cannot do anything else but repeatedly ask the factors of political decision to ensure predictability and as a result, trust in a business climate favourable to the business environment and to continue the reforms agenda to make Romania, as an investment place, be prepared for the future and be able to use available European funds. These investments, which are urgently needed, will offer the necessary impulse to economic growth’ Andreas Lier, the chairman of AHK Romania.Due to the coronavirus pandemics, the restrictions of travel and the supply blockages represent the most important challenges for the companies. The demand for products/services and investments lose their importance. The issues in the international supply chains have lasted for several months. The companies feel the supply blockages and the increase of prices, especially for stainless steel and plastics, as well as for aluminum and timber which cannot be acquired in sufficient quantities. As a result, over 36% of the interviewees look for new suppliers, so that their commercial activity, and their economic evolution will not be affected.AHK Romania participated for the seventh time in the survey ‘ AHK World Business Outlook’ coordinated by the Union of Chambers of Commerce and Industry in Germany (DIHK).Companies in the world were questioned in regard to their investment plans and workforce as well as about the most important risk factors in business in every country.In Romania, there were 49 companies, more than half of them being active in industry and constructions (40.8%), over 40% in services, and the rest of the companies come from commerce. The survey took place between 22nd September and 15th October 2021. AHK Romania is an official representative of German economy and at the same time, the biggest bilateral chamber of commerce in Romania. Set up in 2002, AHK has over 550 member companies and offers the companies an important platform for networking, information exchange and experience. Through the services which they offer and through the events they organize, AHK Romania supports actively the German companies at their starting point on the Romanian market and it is a partner of the Romanian companies interested on the German market.

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