The labor force crisis, soaring
\ninflation, the negative prospects of the exchange rate and the prolonged
\nfinancial deadlock will be the biggest challenges facing the business sector in
\nRomania in 2020, reads a recent survey conducted by a consultancy firm. Whereas
\ninflation and the depreciation of the national currency were the biggest
\nconcerns for investors in the previous survey conducted in July, 2019, in 2020
\nthe labor force crisis holds the spotlight, with over 60% of companies pointing
\nto this problem. 53% of companies that took part in the survey said the
\nprolonged financial deadlock could be a problem, 49% rated inflation as the
\nbiggest problem while 36% referred to the negative evolution of the exchange
\nrate. <\/p>\n
<\/p>\n
The shortage of workers worsened in 2019, while the import of foreign
\nworkers offset under 10% of the needed workforce. Moreover, business people
\nbelieve that, beyond boosting consumption, the salary increases in the public
\nsector have spiked imbalances on the labor market. In 2020 the development
\nplans of several companies are on standby due to the shortage of workers, which
\nunfortunately the state is unable to solve. Most investors have called for a
\nslash in tax incomes as well as for measures to encourage Romanians to come
\nhome, especially the youth. The spike in prices adding to the depreciation of
\nthe national currency has had a significant impact on the economy in 2019, and
\nthe trend is likely to continue in 2020. <\/p>\n
<\/p>\n
Considering 2020 will see both
\nlegislative and local elections, this year could bring about a change of
\ngovernment. Reforms will unfortunately be stalled and postponed for 2021, when
\nwe will witness a new rise in taxes, business people say. Asked what measures
\nthey deem necessary to develop a stable economic framework, over 73% referred
\nto fiscal predictability. A Fiscal Code that should not be modified overnight
\nis what business people have been demanding for years, much to the authorities’
\ndisinterest. The digitization of public administration, investment in
\ninfrastructure, shrinking the public sector and a national plan for vocational
\nrequalification are some of the top measures investors mentioned. The survey
\nwas conducted on a sample of 450 companies from various fields of activity,
\nfrom trade to financial services, agriculture, energy, textiles and IT.<\/p>\n
\n
<\/p>\n
(Translated by V. Palcu)<\/p>\n
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The labor force crisis remains the biggest challenge facing the Romanian business sector in 2020, a recent survey shows<\/p>\n","protected":false},"author":106,"featured_media":83266,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35515,37614,39849,39847,39848],"coauthors":[],"class_list":["post-84236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-business-sector","tag-challenges","tag-financial-deadlock","tag-labor-force-crisis","tag-soaring-inflation"],"acf":[],"yoast_head":"\n