KPMG ROMANIA SRL

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RAMONA JURUBITA

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SERBAN TOADER

  |  18.12.2015

KPMG survey: CEE companies envision healthy economy for 2016

Business leaders in Central and Eastern Europe (CEE) believe that the economic situation will improve in 2016 and that inflation will be mostly contained under the 2% threshold, according to the results of the KPMG survey "Pulse of Economy 2015". This assessment appears to support stability in employment and slight salary increases across the region, say respondents.

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KPMG ROMANIA SRL

RAMONA JURUBITA

RAMONA JURUBITA

KPMG ROMANIA SRL


SERBAN TOADER

SERBAN TOADER

SENIOR PARTNER ROMANIA SI MOLDOVA at KPMG ROMANIA SRL

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As part of the survey, respondents in nine CEE countries – Romania, Bosnia and Herzegovina, Croatia, Czech Republic, Estonia, Latvia, Lithuania, Poland, and Slovakia – were polled to elaborate on current economic trends in these markets.

 

“In several areas, this year’s survey results overlap with those from 2014. At a time when Europe is facing many economic challenges, the most important and encouraging conclusion is that respondents largely see a healthy economic environment for 2016,” said Stephen Spill, COO, KPMG in Central & Eastern Europe.

 

On average 51% of the respondents in the region believe that the economic situation will improve somewhat or even significantly, while 34% do not see any particular changes and only 15% expect worse times ahead. Executives in Romania are among the most optimistic in the region, as 63% of the respondents expect an improvement of the economic situation in 2016.

 

“Tax policies remain high on the decision-makers’ agenda, and simplified tax payment and administration procedures are anticipated from governments, according to 79% of the entrepreneurs and managers who participated in the survey. Moreover, strong sentiment was expressed in favour of a flat personal income tax system, clearly winning over a progressive income tax system,” said Ramona Jurubiță, Partner, Head of Tax & Legal, KPMG in Romania.

 

Business leaders in the CEE countries believe that the public spending priorities for the next three years should include: 1) education, science and innovation (39%); 2) infrastructure (23%); and 3) health and demography. A majority of respondents from Romania (55%) consider that infrastructure should prevail, followed by education and innovation and by health.

 

Well in line with the last year’s outcome, 53% of respondents in the CEE countries do not plan any notable changes in employee numbers. The CEE average of those companies planning to hire stands at 36% and only 12% of respondents in the region plan redundancies. For employees, the salary outlook for 2016 appears rather promising, with 58% of CEE respondents planning increases in staff remuneration, slightly lower than the 69% registered in the previous survey.

 

“To remain competitive both in the domestic and international markets, skilled labour is of the greatest importance, according to 60% of respondents overall, compared to 62% a year ago. Business leaders thus reckon that retaining good staff is a key aspect companies should focus on,” said Serban Toader, Senior Partner, KPMG in Romania and Moldova.

 

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