Economy will become stable in end-year, says Deloitte Romania

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The Romanian economy will get stabilized in the end of the year, with the conclusion of the first autumn transactions to be the positive signal, the representatives of the audit and consultancy company Deloitte appreciated, quoted by the Business Standard daily.
Early in the year, the company was estimating two years of recovery, but now Antonis Ioannides, partner transaction services with Deloitte Financial Advisory, believes clear positive signals could be registered late this year.
The first positive signals have already appeared for the company’s business, with growth being recorded in the number of mandates from investors to both sell and buy. The number of mandates is growing month-to-month.
Compared with the last quarter of 2008, when the market began to freeze, we have more mandates now, Ioannides said.
This is one of the first positive signals from consultants on a market of mergers and acquisitions considered to have stayed frozen since the 4th quarter of last year.
The value of the mergers and acquisitions market reached 100 million euros in the first three months of the year in Romania, that is 10 percent of the volume registered in the same interval last year, when the value exceeded one billion euros, according to data made available by Raiffeisen Investment, quoted by the abovementioned daily.
Global signals of the economy recovering will be transactions being concluded, companies considering investing again and people being hired.
There will be no big signals for now. Romania has the power to get stabilized by itself, but it is impossible for it to record significant growths of more than 4-5 percent,’ Ioannides said.
In the opinion of the consultants from Deloitte, the mergers and acquisitions market is to start ‘unfreezing’ in September in Romania.
According to Ioannides, the government plays a crucial role in the economy now and that’s why it should facilitate investments and public-private like partnerships, so as to create jobs and solve the unemployment problem. He also thinks the priority is represented by the infrastructure, in which Romanian needs to invest massively.
Related to the biggest mistakes Romanian businessmen made during the years of economic growth, Ioannides enumerated the lack of interest for productivity and cost control.
The consultancy company launched this week the report titled ‘Economy at Crossroads: Strategies to Overcome the Critical Point,’ a presentation of the stands of more than 300 managers about the current state of the economy and industry. In their opinion, investments and a good fiscal policy are the best measures to resuscitate economy.
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