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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Two-thirds of German companies in RO expect local business conditions to recover in 2022 or later

Only a third of the German companies in Romania expect the local business conditions to recover in 2021, after the deterioration caused by the COVID-19 crisis.

Meanwhile, 35% of the German companies expect the recovery to come in 2022 and 23% believe that the recovery will take much longer, according to the Business Outlook survey carried out by the German-Romanian Chamber of Commerce (AHK Romania).

The general sentiment among German companies in Romania has deteriorated significantly compared to last year’s edition of the survey.

Only 35% of the respondents believe their companies are in a good situation, down from 60%, while most respondents (55%) believe the situation of their company is satisfactory (up from 32% in 2019).

The share of companies that expect a better evolution in the next 12 months compared to the previous year has dropped from 35% in 2019 to 27% this year.

Meanwhile, the share of companies that expect a negative evolution has doubled from 13% to almost 26%.

Some 40% of the respondents believe the economic context will be worse for their business in 2021 (up from 30%) who said the same about 2020.

However, the share of respondents who expect a better context has also increased from 12% to 22%.

Meanwhile, the share of those who expect things to remain unchanged dropped from 58% to 31%. The negative expectations will also impact investments.

Thus, a third of the companies plan lower investments in the next 12 months (compared to 18% in 2019), while only 12% say they will invest more (down from 22% in 2019).

The hiring intentions have also worsened. The share of companies that will increase their workforce in the next 12 months has dropped from 33% in 2019 to 17% this year.

Meanwhile, 22% of the respondents will likely reduce their number of employees, up from 13% in 2019. The top measures companies take to limit the impact of the COVID-19 crisis are accelerated digitization (70%), cost cuts (69%) and postponing investments (57%).

(Photo: Ruletkka/ Dreamstime)

[email protected]

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Two-thirds of German companies in RO expect local business conditions to recover in 2022 or later

Only a third of the German companies in Romania expect the local business conditions to recover in 2021, after the deterioration caused by the COVID-19 crisis.

Meanwhile, 35% of the German companies expect the recovery to come in 2022 and 23% believe that the recovery will take much longer, according to the Business Outlook survey carried out by the German-Romanian Chamber of Commerce (AHK Romania).

The general sentiment among German companies in Romania has deteriorated significantly compared to last year’s edition of the survey.

Only 35% of the respondents believe their companies are in a good situation, down from 60%, while most respondents (55%) believe the situation of their company is satisfactory (up from 32% in 2019).

The share of companies that expect a better evolution in the next 12 months compared to the previous year has dropped from 35% in 2019 to 27% this year.

Meanwhile, the share of companies that expect a negative evolution has doubled from 13% to almost 26%.

Some 40% of the respondents believe the economic context will be worse for their business in 2021 (up from 30%) who said the same about 2020.

However, the share of respondents who expect a better context has also increased from 12% to 22%.

Meanwhile, the share of those who expect things to remain unchanged dropped from 58% to 31%. The negative expectations will also impact investments.

Thus, a third of the companies plan lower investments in the next 12 months (compared to 18% in 2019), while only 12% say they will invest more (down from 22% in 2019).

The hiring intentions have also worsened. The share of companies that will increase their workforce in the next 12 months has dropped from 33% in 2019 to 17% this year.

Meanwhile, 22% of the respondents will likely reduce their number of employees, up from 13% in 2019. The top measures companies take to limit the impact of the COVID-19 crisis are accelerated digitization (70%), cost cuts (69%) and postponing investments (57%).

(Photo: Ruletkka/ Dreamstime)

[email protected]

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