PwC: Half Of Romania CEOs Expect Improved Sales In Following Year

Almost half of the Romanian companies’ chief executives estimate higher sales over the next 12 months, while around 70% of them see increasing taxation as the main threat for their business, according to a survey by PricewaterhouseCoopers.

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"As recession fears subside, optimism seems to return amidst the Romanian business community. The local CEOs are moderately confident about the short term growth perspectives of their companies, 43% stating that they are very confident about their company's prospects for revenue growth in the next 12 months,' PwC Romania said Thursday in its Global CEO Survey.

The results are slightly better than the European Union average, where 40% of the CEOs expressed confidence for revenue growth in the next year, yet more cautious than the global and the Central Eastern Europe averages, of 48% and 53% respectively, the report says.

"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," said Vasile Iuga, country managing partner PwC Romania.

As regards the identification of potential sources for growth, 50% of local CEOs said that new product and service development is the main opportunity for business growth in the next 12 months, a percentage closer to China (46%) than to the global (29%), EU (29%) and CEE (35%) 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", Iuga explained.

The PwC survey showed that companies might resort to reorganization plans in the coming 12 months, as 70% of the Romanian CEOs said they want to further reduce costs.

As 2010 was a year of major fiscal instability, during which the government was forced to take painful tax adjustment measures, 67% of CEOs put the increasing tax burden at the top of their list of potential threats to their growth prospects, the survey reads.

Access to lending, financing, the rising energy costs and potential new competitors entering the market are also less worrisome for local CEOs than for their global counterparts.

PwC provides audit, fiscal and business consultancy services for different sectors of activity.

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