Foreign companies display optimism

More than half of the international companies operating in Romania estimate an increase in investments over the second quarter, while the number of those which anticipate either a standstill or a decline has considerably decreased, according to the economic barometer provided by the consulting company KPMG Romania for Q1, 2001.

The study is based on the answers provided by 80 international companies operating in Romania. The results of the survey show that the trend of investments made by foreign companies was basically similar to the one in Q4 last year.

Out of the companies canvassed, 35% registered an increase in investments, 45% did not make more investments than in the previous quarter, while 20% invested less money.

Forecasts for the investment trend over the next three months show a healthy rejuvenation, as more than 50% of those surveyed anticipated a rise in investments, 40% estimated their investments to maintain at the same level, while less than 10% considered their investments would decrease.

Nearly 60% of the companies included in the study said they felt an improvement in their economic performance over the past three months, more than 30% estimated it maintained at the same level and only 10% said it was poorer.

Q2 estimates show an increase in the number of those anticipating an improvement in their economic performance up to 65%, while 30% feel it will maintain at the same level and less than 5% anticipate the situation to get worse.