Latest News  

Romanian CFOs: GDP to grow 3.5% in 2016, new market expansions

After a year marked by healthy macroeconomic indicators, Romanian CFOs are optimistic regarding the country's growth in 2016 and are increasingly looking to either enter new markets or expand in size, according to the 7th edition of the Deloitte Central Europe CFO Survey which includes Romania.

2016-02-19 11:54:45 - by Bogdan Tudorache

The survey shows that nearly a quarter of the interviewed CFOs estimate a GDP growth up to 3.5%, which is in line with the World Bank's forecast of 3.9%.

Meanwhile over half of those interviewed (52%) are starting to see new markets as a source of revenue, compared to 33% last year. In addition, 57% of the CFOs expect the number of employees to increase.

"If three or four years ago companies were faced with budget cuts following the economic slowdown, companies are today looking again at expansion, as they are considering new markets more than before or are looking to expand their teams," said Ahmed Hassan, Partner Deloitte Romania and CFO program leader. "On the other hand, the survey reveals talent shortage at middle, top and senior levels which will be an important issue for companies to consider over the next year."

Despite Romanian CFOs showing a high degree of optimism regarding the future of the CEE region, the majority is still cautious when taking risks: 78% of the CFOs believe it is not a good time to take larger risks and 76% are looking at internal financing as a source of funding rather than bank borrowing.

"Recent changes such as the new Fiscal Code are also well regarded by CFOs as 69% believe these will have a positive impact on their business. In the short term the level of optimism and business sentiment will be influenced by economic and political stability," Hassan also said.

According to Mircea Varga, CFO Tiriac Holdings, Romania could become one of the most attractive economies in Europe depending on its ability to manage a favourable moment.

"Despite a discouraging year-beginning marked by global turbulences with main indexes reaching historic lows for the last five years, dramatic de-capitalization of important European banks in the context of discrete adoption of the "bail-in" measure for the European banking system and serious questions concerning the US economy's entry into a new recession, I remain optimistic regarding Romania's economic growth in 2016. I believe a 3.5% to 3.8% increase of its GDP is still sustainable," Varga said.

"In this respect I believe that the tax relaxation started in 2015, together with the strengthening of the financial and fiscal discipline along with the tightening of the tax collection measures, are necessary ingredients for the sustainable development of a healthy economy. Romania's economy could become one of the most attractive economies in the region and- why not- in Europe but that depends on us how well we will succeed to manage this favourable moment," Varga added.

In turn, Bogdan Popa, Vice President & CFO Raiffeisen Bank Romania said that 2016 will bring more competition among banks in their efforts to bring new investment opportunities particularly for SMEs.

"In 2016 the economic growth will continue, at micro level we will see bigger differences between the players, an accelerated adoption of new technologies and adaptation or renewal of the business models. The focus will stay on the conservation of resources, even though the decrease of costs is no longer a purpose in itself, the increase of productivity will remain a concern. Banks will search for lending opportunities especially at SME level, trying to bring on the market advantageous credit lines for investments in innovation, technological renewals and workforce development," Popa said.


Key Findings of the Deloitte CFO Survey in Romania
• Almost 70% of the CFOs believe that the current tax changes will have a positive effect
• 40% consider shared service centers (SSCs) as beneficial for the company
• 45% of the CFOs believe that lack of the required skills is one of the main reason their company has difficulties in finding qualified personnel
• 33% of the CFOs predicts that CAPEX will focus on IT hardware and software and plant & equipment
• 30% of the CFOs expect that investment in hardware and software will be one of the top 3 IT challenges

Economic Outlook
• 24% of the CFOs see a GDP growth between 2.6 and 3.5%
• 53% of the CFOs are optimistic regarding economic growth
• 78% of the CFOs believe that this is not a good time to be taking greater risk onto their balance sheet down by 7% from previous year
• 52% of the local CFOs are starting to see new markets as o source of revenue compared to 33% last year
• 59% of the local CFOs are seeing growth opportunities in the local markets compared to 62% last year
• 67% of the Romanian CFOs believe that the Greek crisis has seriously affected the stability of the Eurozone
• 63% of the CFOs are considering the current economy as having a normal level of uncertainty as compared to 37% the year before
Costs
• Direct cost reduction is no longer a priority for 59% of the CFOs
• Indirect cost reduction is somewhat important for 67% of the CFOs
Financing
• 30% of the CFOs are seeing bank borrowing as unattractive as compared to 15% last year
• 33% of the CFOs believe that the cost is likely to increase in the next 12 months
• 41% of the CFOs have rated corporate debt as attractive while 33% consider equity as an attractive source of funding
Talent
• 51% of the CFOs believe that there will be a decrease in unemployment
• 62% of the CFOs do not expect talent shortages in the finance area over the next year
• 73% of the CFOs expect talent shortage in the middle to top level
• 57% of the CFOs expect the number of employees to increase

Company's growth outlook
• 76% of the CFOs are looking at internal financing as a source of funding for the company
• 71% of the CFOs are considering business remodelling or restructuring to be a priority for their business
• 50% of the CFOs are considering operating margins to increase
• 78% of the CFOs expect an increase in revenues

The 7th edition of the report represents the views of almost 500 CFOs based in 11 Central European countries: Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia. The survey was conducted between August and October 2015. The survey tracks the latest thinking and actions of CFOs representing largest and most influential companies in the Central European region. It explores top-tier CFO issues across four areas: business environment, company priorities and expectations, finance priorities, personal priorities.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Cushman & Wakefield Echinox: StreamWIDE joins the new IT hub created in the Timpuri Noi Square project

StreamWIDE, a company specialized in the software and telecommunications industry, realocates its office in Bucharest in the Timpuri Noi Square project, joining the new IT hub created in the business park devel

 Read Full article »
CBRE: Office deliveries expected to bring new stock of 635.00 sqm, Bucharest to reach 3.9 mln sqm modern office spaces

During 2020–2021 to approx. 635,000 sqm of modern office space are expected to be delivered on market, increasing the Bucharest modern stock at approx. 3.9 million sq m, a step closer to a new a threshold and

 Read Full article »
Uber opens at Bucharest the largest support center to drivers and business partners in CEE

Uber company launched this week in Bucharest the largest center in Central and Eastern Europe that offers assistance to drivers and business partners in Romania, a center where they can contact directly Uber re

 Read Full article »
Samsung and Orange Romania activated the 5G VR Live streaming at Untold Music Festival in Romania

Samsung Electronics and Orange Romania have successfully deployed a 5G New Radio (NR) network to demonstrate a series of 5G use cases at Untold Festival 2019, the largest annual dance music festival in Romania,

 Read Full article »
MVP Lab in Sibiu named as one of Europe's best in the "Ones to Watch" list at European Business Awards

Ropardo MVP Lab has been named as ‘One to Watch' in Europe in a list of business excellence published by the European Business Awards, one of world's largest and longest running business competitions.

 Read Full article »
Endava marks one year since IPO

Endava, one of the most important software companies, present on the local market with 7 delivery centers, reaches an almost double capitalization, 2.07 billion USD, on July 26, 2019, one year after listing. Th

 Read Full article »
Infosys opens cyber defence centre in Bucharest

Infosys, a global leader in next-generation digital services and consulting, announced the launch of its Cyber Defence Centre in Bucharest, Romania. The Defence Centre is an expansion of services delivered thro

 Read Full article »
QuEST Global completes integration of IT Six Global Services

QuEST Global, a global product engineering and lifecycle services company, has successfully completed the integration of IT Six Global Services SRL. QuEST Global acquired IT Six, a software engineering services

 Read Full article »
RE MAX Romania opens three more offices

RE/MAX Romania has expanded its network, adding three new offices – RE/MAX Partners in Cluj, RE/MAX Quality in Sibiu and RE/MAX Prestige in Targu Mures.

 Read Full article »
Microsoft and OpenAI form exclusive computing partnership to build new Azure AI supercomputing technologies

Microsoft Corp. and OpenAI have partnered to further extend Microsoft Azure's capabilities in large-scale AI systems, according to a release of Microsoft.

 Read Full article »
 
 
 
MOST READ ARTICLES
» Six reasons why you need a single clou...
» Coresi Business Park obtains the first...
» TELUS International: Meeting Millennia...
» Ymens launches new ERP for Romanian mi...
» BSA study shows that IT security threa...
» Two new managers appointed in the Boar...
» Jacek Levernes: Promoting Romania and ...
» New technologies will accelerate digit...
» BP expands Wipro contract, possibly by...
» IT outsourcing year 2015: major change...
 
EDITOR CHOICE
Workplace of the Future conference to take place on November 20th at Bucharest

The Diplomat-Bucharest together with Outsourcing Today organize the 3rd Edition of WORKPLACE OF THE FUTURE, on 20th of November 2019, in Bucharest, at Capital Plaza Hotel.

 Read Full article »
Strategic Talent Acquisition at People Empowering Business Forum on October 30 in Bucharest

Latest trends like demographic upheaval, globalization, digital technology, and changing social values and worker expectations, are disrupting business models and radically changing the workplace. These are req

 Read Full article »
Informal IT School and UiPath launch an educational program for RPA development to start in October

Informal IT School announced a partnership with UiPath to launch an RPA development educational program of five months, 100 hours of courses, five days a week. The program will run in Cluj-Napoca.

 Read Full article »
Impact Hub Bucharest joins 3house to manage three coworking spaces in the city

Impact Hub Bucharest, a coworking spaces manager and developer of accelerator programs and events merged with 3house, a new concept of workplace launched in 2018. By this, Impact Hub reaches 3 locations and 6.7

 Read Full article »
JLL: Total office space in Bucharest to reach 3 million sqm

The second quarter of 2019 reconfirmed the increased interest for the office market in Romania. Over 115,000 square meters of office space were leased over this period at the national level, a value similar wit

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events