EY: Romanian business leaders become more prudent in growth expectations

Business leaders in Romania have slowly started to lose the positive edge they had in the beginning of the year, and become more prudent. More managers in Romania expect their businesses to see revenue drop, 12% compared to 2% in the beginning of 2014, according to a recent EY study. Fewer managers expect growth this year, even if small growth – 1-5% growth. The group of respondents who pointed out to this growth expectation lost 19%, which moved to the negative expectations area. EY’s study is based on answers from 305 top managers in Romania, whose response were collected between July 28 and August 8. Half of the respondents run companies with turnovers above EUR 50 million, and half of them are CEOs and company presidents. Only 2% of these respondents expect an increase by around a third of their company’s staff. However, 37% - compared to 22% in early – 2014 – expect a stagnation in labor force dynamic. Fewer managers now foresee salary increases – 51%, compared to 60% in the beginning of 2014. editor@romania-insider.com