Sentiment of German companies in Romania deteriorates from last year
<p>Both the current situation and the outlook for the 12-month horizon have deteriorated, according to a survey conducted by the German-Romanian Chamber of Commerce and Industry (AHK). However, a high share of the companies surveyed plan to increase employment and investments, while 88% would still choose Romania as a destination for investments.</p>

<p>Only 33% of the respondents see their companies' situation better than a year ago (from 45% last year), while only 19% expect certain improvement over the next 12 months (25% in 2023).&nbsp;</p>

<p>The shares of companies planning to increase employment (41%) and investments (34%) have not decreased significantly from last year when they were 42% and 40% respectively.</p>

<p>However, the biggest risks for development are the lack of qualified personnel and the increase in labor costs (for 58% of companies).</p>

<p>Another risk for business is the decrease in demand, a risk taken into account by 49% of the surveyed companies. They expect a continuation of the demand crisis, both from the country and abroad. Low demand is also partly due to the poor economic situation in Germany.</p>

<p>Energy and commodity prices also continue to cause problems for companies. On the other hand, companies no longer consider the "classic" infrastructure-related risk to be so high. Only 11% still see this factor as a risk after financing and legal stability.</p>

<p><em>iulian@romania-insider.com</em></p>

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