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CCIFER: the perception of the economic environment is getting worse, because there is no predictability for investments in Romania
The economic environment in Romania is getting worse , and the perception is worse because there is no predictability for investments, said on Monday the president of the French Chamber of Commerce and Industry of Romania (CCIFER), François Coste in a conference.
"CCIFER carries out two surveys each year, a barometer in June and another in November. Your answers (of French companies in Romania ) are around nine criteria. We have four external criteria on the perception that you have to economic, political, social environment and attractiveness for your companies and we have other internal criteria - what are the prospects of development of turnover, profitability, staff and investment. Finally, we have a summary note and the average of the preceding criteria. In ordinate axis there are grades from 1 - very negative to 5 - very good impression. Thus, on the basis of the economic environment in Romania, we have a rate of 2.91 on a scale from 1-5 in 2018 to 3.12 in 2016. Although the GDP increased, the perception on the economic environment in your country is getting worse, because there is insufficient public investment, which makes the economic environment is not durable. We now have an exchange rate of 4.66 lei for one euro, the highest so far, "said Coste.
According to the CCIFER representative the political criteria considered by the respondents in the new barometer is "down".
"The political criterion is down. Compared to 3.31 in 2015, we have 1.80 currently. What we see is a sense of unpredictability and instability resulting from the increased number of changes in the Romanian legislation introduced by ordinances. The social criterion passes from 3.71 to 2.76 this year and this shows the difficulty of retaining and finding quality employees, while social dialogue is likely to depart from the specific reality of each company. As for the external factors we lose one point and against 3.44 to arrive at 2.98. Here, Romania's attractiveness as prime competitiveness is affected by the increased cost for the human factor, due to the scarcity of labor. Labor is a challenge on a long term. When we have a turnover rate of 3.43 and largely we are reasonably optimistic in terms of economic growth. The welfare of French companies depends heavily on the economic environment in Southeast Europe. Regarding tax changes, the rate decreased from 3.61 in 2013 to 3.16 in 2018, representing the difficulties our companies have to hire and maintain our long-term employees ", said François Coste .
The CCIFER president cautioned that "given the results of the Barometer the economic environment is deteriorating in Romania, but the country's strategic assets can be an element of long-term competitiveness.
The French Chamber of Commerce and Industry of Romania (CCIFER) organized on Monday the annual conference on "Romania's economic prospects".