Copyright thediplomat
Investment outlook:Only 25% of companies plan to increase capital investment over the next 12 months, a 10% drop from the spring edition and the lowest level recorded in the past decade. Meanwhile, 49% will maintain current investment levels, and 26% intend to reduce them. Revenue expectations: 46% of respondents expect revenue growth from Romanian operations in 2026, down from 55% in the previous edition. While this marks a continued downward trend, it still reflects a relatively positive outlook on Romania’s market potential, especially when contrasted with more subdued expectations in other regional markets. Market perception: In the domestic market, 40% anticipate growth and 47% expect stagnation. Export expectations are more subdued, with only 29% forecasting growth and 62% expecting stagnation. Competitiveness: Romania is perceived as uncompetitive in several areas: bureaucracy (78%), regulatory burden (78%), transparency and consistency of policy application (73%), fiscal burden (58%), and infrastructure (53%). The availability of an adequate workforce is the only area seen as competitive (64%). Cost management and Workforce plans: 83% of companies are considering cost reductions. Only 16% plan to expand their workforce—marking the lowest intention to expand since the COVID-19 pandemic. Perception of the business environment: 68% of respondents believe the business environment has deteriorated, a slight improvement of 4 percentage points compared to the spring edition. Legislative predictability: 69% of FIC members consider the legislative environment less predictable. However, 9% now view it as more predictable—a modest but positive shift compared to the last four editions. Challenges: Legislative uncertainty (76%), inflation and interest rates (70%), and taxation (65%) remain the most pressing concerns. Political instability is also cited by 58% of respondents as a major obstacle to business planning and investment. Impact of fiscal measures: Recent fiscal packages have increased taxation, added compliance complexity, and introduced frequent legislative changes. These have raised operational costs, reduced profitability, and dampened demand—forcing companies to prioritize liquidity and delay long-term growth projects. Opportunities ahead: Despite the challenges, companies identify growth potential in export and market expansion, energy sector development and transition, agriculture, and defense. Operational efficiency and client services—such as cost-cutting, restructuring, and new customer solutions—also rank high, reflecting a strong focus on resilience and innovation.
