The level of appreciation for the investment climate reaches a new positive record (51%), and intentions to expand operations and investment plans in 2023 remain at high levels.

The economic results for 2022 exceeded estimates across all areas: revenues, number of employees, and investments.

Romania has not generated new competitive advantages, and disadvantages are exacerbated in the absence of reforms and targeted measures.

Labor market tension remains at record levels, with 94% of companies finding it difficult to find specialists in their respective sectors.

AmCham Romania presented the results of the fifth edition of the annual survey on the quality of the investment climate, indicating an increasing optimism compared to previous editions regarding Romania's economic potential. This is confirmed by consistent investment intentions in the next 12 months and expansion plans over the next 3 years.

Regarding the overall investment climate, 51% of participating companies rated it as good or very good in the 2023 edition of the survey, compared to 39% last year, showing an increase compared to the perception in 2019, before the pandemic. The high level of optimism can be an indicator that the pressing impact of multiple crises in recent years is starting to fade, as well as the confidence in Romania's development opportunities.

Increased confidence is also reflected in the business results of 2022, which saw growth in all analyzed areas compared to anticipated levels: revenues (67%), number of employees (51%), and investments made (55%). Companies maintain an optimistic outlook, anticipating similar performances in all three areas for the current year, demonstrating maturity and resilience gained through overcoming challenges and uncertainty in recent years.

In terms of the most appreciated market conditions, the quality of digital infrastructure remains in the first position for the fifth consecutive year, increasing from 49% in 2022 to 57%. It is followed by the quality of human capital, rated as good or very good by 47% of respondents.

In contrast, the least appreciated market conditions are determined by the poor and very poor ratings given by the majority of participating companies for each of the top five conditions. With 84%, the quality of transportation infrastructure surpasses bureaucratic hurdles, which remains in second place with 74%. It is followed by the quality of healthcare infrastructure (68%), energy prices (65%), and predictability of the investment framework (62%).

Regarding the competitive advantages that remain relevant for Romania in the post-pandemic period and regional geopolitical context, EU membership remains in the first place (82%), followed by NATO membership (60%). Other competitive advantages included in the survey have increased compared to 2022: the quality of human capital (53% compared to 42%) and the competitive level of corporate taxation (33% compared to 31%). The quality of digital infrastructure remains relatively the same (28% compared to 29%).

Regarding financing, own funds continue to be the most utilized source by most companies (86%), followed by bank loans, which have significantly increased this year from 35% in 2022 to 65% in 2023. The proportion of shareholder loans also increases from 29% in 2022 to 65% this year. European funds, included for the first time in this year's edition, are an option for 39% of respondents. There is a positive trend in accessing financing from capital markets and private equity, each recording nearly double the proportion compared to last year.

In terms of concerns, the strongest one by far is generated by labor market tension, reaching a critical level, as 94% of participating companies face difficulties in finding suitable employees. Structural issues in the labor market caused by negative demographic trends, migration, disparities between regions, rural and urban areas, poor quality, and inadequacy of the education system have worsened. The most significant impact is felt in the most developed regions, which account for approximately 70% of the labor force deficit, according to an analysis conducted by PwC for AmCham.

The evaluation of AmCham members through the 2023 edition of the Investment Climate Quality Survey, regarding both sources of optimism and concerns, is even more important as 2023 is a pre-election year, and any measures detached from economic reality could generate costly imbalances for Romania.

In this context, AmCham Romania will continue to promote constructive and substantive dialogue on economic priorities, contributing with policy recommendations and measures aimed at strengthening Romania's economic competitiveness.

AmCham Investment Climate Quality Survey, 2023 edition

Participants:

215 (40%) out of a total of 530 AmCham Romania member companies, at the CEO or CFO level.

Breakdown:

48% - large taxpayers

32% - medium taxpayers

20% - small taxpayers according to ANAF classification

Survey period: May 2023