Deloitte study: Companies look to Govt for economic stimulus, expect market comeback in 2011

Romanian companies, most of which witnessed decreases of their turnovers and profits last year, expect a lending hand from the Romanian Government, mainly fiscal stimuli, found a recent survey carried out by Deloitte. While a great number of companies were expecting an exit from the crisis this year, according to Deloitte's previous survey, they have adjusted their expectations to the second half of this tear or next year. But most of the companies expect an economic revival next year – 31 percent in the first half and 24 percent in the second. The lack of predictability in terms of taxation in Romania are among the main elements which could impact the respondents' businesses this year, according to the survey, followed by the lack of fiscal stimuli, uncertainty of taxation levels and delays in tax reimbursement. Last year was a cost cutting period for 97 percent of those who took part in the survey – 150 CEOs of companies active locally in different market fields. 27 percent of those who cut costs cut the administrative ones, 18 percent logistics and distribution, another 18 percent, the PR and marketing. Production costs were cut by 14 percent of these companies, while 19 percent have cut their workforce costs. Deloitte's CEO Survey included information from 150 CEOs in Romania. The number of respondents was down to half compared to last year's survey. Companies were selected from different market segments based on turnovers, covering the top tiers of their markets.