German investors think the economic situation is not good but 83 per cent would invest again in Romania

Only 7 per cent of the German companies in Romania appreciate the economic situation of the country is good but 83 per cent of the above would choose the Romanian market for investments. 58 per cent expect a growth of the turnover and 45 per cent intend to hire new people.

2014-08-11 15:52:32

"Even if only 7 per cent of the German companies in Romania asked if they appreciate the economic situation as being good, however, for 26 per cent of them the perspective is better. As regards the situation of their companies for the current year, the expectations are positive. The number of those who consider the situation is good increased to 50 per cent (from 36 per cent in 2013) and over half of the companies consider that this year the situation of their companies will improve. As regards the turnover, 58 per cent of the interviewees expect a better turnover, the expectations in this respect are big" the results show. The situation report for Romania 2014 made by the Romanian-German Chamber of Commerce and Industry shows the results.

Moreover, over 45 per cent of the companies intend to hire new people and only 14 per cent think to reduce the number of employees. Thus, Romania is in the trend of the region registering at the same time the best result since 2008 to the present moment.

At the end of the year there were in Romania almost 8,000 active companies with German capital, Germany being the seventh time in a row the most important commercial partner of Romania..
"It is sure that in the case of these evaluations an important role comes to the macroeconomic evolutions in the European Union as a whole, especially if we take into consideration the fact that Romania has over 70 per cent of its commerce with the states in the Union" the report mentions.

"Romania did not manage to improve its infrastructure,and this is one of the points where the German investors complain most often. In the ranking of the states participating to the interview, Romania is the last. Only 7 per cent of the interviewees are satisfied, while 41 per cent are dissatisfied and 28 per cent even very dissatisfied, the rest being undecided. As regards the availability of suppliers, Romania improved slightly by comparison to the previous year( 30 per cent are satisfied, against 20 per cent in 2013), the quoted source mentions.

At the same time, the German companies presented in Romania are not satisfied with many domains of the economic policies, similar situation to that in the other countries in the East and Central Europe.
As regards the fiscal system and the fiscal administrations, 46 per cent of the companies are dissatisfied (45 per cent in 2013) even very dissatisfied (growing from 28 per cent). When referring to the level of taxation, 55 per cent expressed negatively ( as compared to 49 per cent last year). Dissatisfied are the companies of the judicial safety, where Romania is situated this year under the East and Central Europe average, with 61 per cent of the answers for the category dissatisfied and very dissatisfied.

In some points, such as the judicial safety or the predictability of the economic policies, the dissatisfaction increased comparatively to the previous year, especially as regards collaboration with the public administration and their efficiency (49 per cent dissatisfied, 16 per cent very dissatisfied) access to financial aid (33 per cent dissatisfied, 28 per cent very dissatisfied) transparency to public bids (30 per cent dissatisfied, 36 per cent very dissatisfied).
"Even if numerous German companies are dissatisfied with some factors of the investment placement, however the majority 83 per cent would choose Romania again as investment placement, only 17 per cent would have in mind alternative placement. Romania is kept the 11th in the ranking of the most attractive countries in Central and Eastern Europe. The most attractive in the region is Poland, followed by the Czech Republic and Estonia. The last places are occupied by Kosovo (18th), Belarus (19th) and Albania (20th), the report shows.

The Romanian-German Chamber of Commerce asked 123 companies, which expressed themselves as regards the general economic situation in Romania, the situation of their business and the perspectives of the domain, but as regards the important factors for investment placements.