2017 has so far brought various challenges to Romania’s political climate and it is now time to see how it will unfold from an economic perspective.
After a closer look, we found out that Romania’s economy accelerated at the close of 2016, propelled by strong domestic demand. Q4’s GDP outturn brought 2016’s overall growth rate to 4.8%, the fastest pace since 2007 and the highest mark in the EU. The government is counting on the growth momentum carrying over to justify its 2017 budget, which was passed in February and foresees large spending increases, on defence for example. The budget deficit is expected to come in at 2.99% of GDP this year, within the EU’s 3% limit, but this is based on very optimistic GDP growth forecasts.
For 2017, the IMF forecasts that the consumer price index in Romania will register a 1.7% increase, with another 2.5% increase expected in 2018.
According to our 2016 Barometer Cost Management Survey, it looks as if the historically low-interest policy of the European Central Bank has no influence on the strategic investment behaviour of small and medium sized companies. Also, external factors like Brexit do not have a measurable impact on companies’ strategic planning.
Considering the new challenges brought by global political shifts this year, including the local government’s new policies and legislative unpredictable changes, the efforts of companies to further strengthen their EBITDA and profitability through operating costs optimisation and increased efficiency is more acute than ever. After interviewing 281 companies from 10 European countries, we found out that 20% of achieved savings are used to drive the companies‘ profit and are not reinvested. Efficient sustainable growth is the mark of the future, but it seems to be also an opportunity neglected by many.
Let’s change that! Meet with an Expense Reduction Analyst and start being more efficient in 2017! Cristian Ionescu, Country Manager of Expense Reduction Analysts Romania.
In this issue:
- 2017: A Year of Challenges and Opportunities, p. 1
- How to Implement a Successful, Sustainable Cost-Management Programme, p. 2
- Revealing Findings for Leading Logistics Company, p. 2
- Cost Optimization for Cycle European, p. 3
- Top Savings Obtained for World Class Romania, p. 3
- FOCUS ON: Fleet Management, p. 4
- Savings on Energy Costs for Romanian Bank, p. 4