German companies in Romania report their financial status deteriorated
The economic situation of companies with German capital in Romania deteriorated this autumn, according to a survey conducted in October by the Romanian-German Chamber of Commerce and Industry (AHK Romania) among representatives of member companies.
The sentiment has deteriorated as well, as the majority of the polled companies expect the local economy to lose steam in the next 12 months, remaining pessimistic regarding the evolution of businesses, Ziarul Financiar reported.
The main reasons for pessimism are the uncertainty caused by geopolitical risks and the decrease in demand against the background of high inflation and interest rates. Many companies also invoke the lack of a qualified workforce and the rising labor costs as reasons for concern.
Thus, only 17.1% of the interviewed companies expect Romania's economic situation to improve in the next 12 months, compared to 22% in the spring, while 38% believe it will remain unchanged. The majority (44.7 %) believe that the economic situation will deteriorate, an increasing percentage from 26% in the spring of 2023.
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