AmCham Survey: Six out of ten companies in Romania anticipating revenue growth in 2024

The overall investment climate is rated positive by 46% of respondents; plans to expand operations and investment in 2024 reflect confidence in Romania's potential, and companies report revenue growth in 2023, and a majority (58%) anticipate further growth in 2024, according to the findings of the latest AmCham survey on the quality of the investment climate in Romania released on Tuesday by officials of the American Chamber of Commerce in Romania (AmCham).According to the survey, this positive outlook is supported by business results that match the estimated levels for revenues (63%) and investments (51%). For 2024, companies anticipate similar performances, with slight decreases in growth across all three areas, including the number of employees."The first question was: 'How do you assess the investment and business climate in Romania' and as we can see from the results that while after in 2023 companies' confidence in the investment climate in Romania was at a record level, with 51% of respondents rating it as 'good' and 'very good' in 2024 we see a slight depreciation by five percentage points. The migration occurred from 'good' and 'very good' to 'neutral,' , not necessarily to the negative spectrum, to 'poor or bad,' which is good news," AmCham Romania Chairman Cristian Sporis told a news conference on Tuesday.Regarding the most appreciated market conditions, digital infrastructure quality holds the top position for the sixth consecutive year, with 60%, followed by the quality of human capital, which has increased in importance and percentage compared to previous editions.Sporis also said that the business environment has started to feel the effects of the 1% minimum tax, high inflation, as well as recession fears."If we look historically at the results of the survey on the business climate of the last six years, the situation has improved considerably, decreasing from 33% in 2019 to 17%. The sectors were most companies with a 'good' and 'very good' level of appreciation operate are IT&C, banking and financial services, automotive, consumer goods and, surprisingly, HoReCa. The sectors where most large companies with a 'poor' and 'bad' level of appreciation operate are energy, retail, distribution. Comparing the estimated level with the one achieved, we can conclude that, despite the economic challenges and uncertainty, most companies managed to achieve results in line with the estimates in terms of revenues and number of employees," Sporis said.For the first time in recent years, the AmCham survey reflects a slight easing of labour market tension. The percentage of those who consider the labour market tense, meaning they face difficulties finding qualified employees and rising costs, decreased from 94% to 88%.As for the mix of business financing source, 91% of companies, up from 86% last year, rely on own funds, followed by shareholder loans mentioned by 69% of respondents.European funds are an option for 28% of respondents, a significantly lower percentage than in the previous edition. Other financing sources, such as capital markets and private equity, are used by less than 10% of respondents, while state aid, included in the survey for the first time, was indicated by 11% of companies.Companies' investment intentions in Romania remain positive: 72% of companies have planned investments in 2024.The 2024 AmCham Business Barometer Survey was conducted between April 15 and May 31, 2024 on a sample of 235 companies, out of a total of 570 member companies.