Romanian CEOs, optimistic about medium term perspectives of the local economy, PwC report shows

Newsroom 31/03/2011 | 14:44

Optimism seems to return amidst the Romanian business community. The results of this year’s edition of the Global CEO Survey for Romania show that local CEOs are moderately confident about the short term growth perspectives of their companies, 43 percent of them stating that they are very confident about their company’s prospects for revenue growth in the next 12 months. These results are slightly better than the EU average, where 40 percent of the CEOs expressed confidence for revenue growth in the future year, yet more cautious than the Global and CEE averages, of 48 percent and 53 percent respectively.

However, on the medium and long term, the perspectives for growth in Romania seem highly appealing for the local CEOs, 70% of which state that they are very confident in their company’s prospects for revenue growth in the next three years, a significantly higher level of confidence than that shown by the CEOs from the more mature markets of the EU (47 percent). Quite remarkably, Romanian CEOs seem to mirror the medium term optimism of top managers from highly dynamic emerging markets such as China, where 72 percent of CEOs have expressed high confidence in the prospects for revenue growth in the next three years. 

“In the past two years, the Romanian economy started a gradual restructuring process that is due to prepare it for sustainable development. Local CEOs are once again planning for a period of growth, rather than focus on the nitty-gritty of survival in a recession environment. Deleveraging and cost-cutting have been put in the background, while the focus is now on strengthening the position in the market, developing new products that would answer the recent evolutions in consumer behaviour, managing key talents and strategic changes in the organization in order to adapt to the industry dynamics”, stated Vasile Iuga (in picture), Country Managing Partner, PwC Romania.

When it comes to identifying potential sources for growth, 50 percent of local CEOs state that new product and service development is the main opportunity for business growth in the next 12 months, a percentage closer to China (46 percent) than to the Global (29 percent), EU (29 percent) and CEE (35 percent) ones.

“Despite the recession, Romania is far from being an overcrowded market. There are still many market segments that have been insufficiently developed and overall the country is suffering from a deficit of offer rather than an excess of demand, a fact highlighted in the stubbornly high inflation rate”, explained Vasile Iuga.

For PwC’s 14th Annual Global CEO Survey, 1,201 interviews were conducted in 69 countries during Q4 2010. Thirty interviews were conducted in Romania, while the global sample includes 15 interviews. All data on Romania was based on these 30 interviews.  

 

Corina Dumitrescu

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