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KeysFin barometer: Businesspeople concerned by sharp price rises
Businesspeople are concerned about the sharp rise in prices and developments on the foreign exchange market, revealed a half-yearly barometer on the business status carried out by KeysFin.
"Most investors point to inflation as the main challenge for the Romanian economy in the coming period, as well as to wage rises, the appreciation of the euro and the increase in gas and electricity tariffs," say KeysFin analysts, according to a Tuesday release.
Asked about the main challenges in the next six months, most managers mentioned a sharp increase in prices (82 pct), the dynamics of the foreign exchange market (57 pct), the deepening of the labor market crisis (46 pct) and the evolution of the fiscal framework (34 pct). A share of 22 pct of the respondents mentioned the uncertainties related to world economic developments.
The business people estimate that Romanian economy will further see moderate growth in the next six months, and the significant evolution of consumption and the positive results expected in agriculture will generate a 4 pct advance in the Gross Domestic Product.
"After a positive start in most sectors of the economy, investors estimate GDP growth will pick up speed in the second half of the year, mainly driven by higher consumer spending. (...) The KeysFin barometer shows that 72 pct of the surveyed managers expect a GDP growth between 4.2 pct and 4.7 pct, 16 pct anticipate a growth rate by more than 5 pct and 8 pct consider the GDP will rise by less than 4 pct; 4 pct of the surveyed chose not to answer, considering that there are too many unknowns to decipher economic developments in the second half of the year," said the cited source.
Asked which sectors they consider will perform best in H2, 64 pct of the investors indicated trade (especially in foodstuff), 23 pct said they expect a positive evolution of agriculture, and 10 pct pointed to the real estate sector. Next on the list are tourism (8 pct), transportation (7 pct) and the sector of services, mainly those provided to the population (4 pct).