Vasile Iuga, country managing partner of PricewaterhouseCoopers Romania, believes there will be quite a long period of time until we see an economic rebound and expects many of those who have set out on their own to be "swallowed".
Romania has been and continues to be hurt by the economic crisis, but has the necessary resources to overcome it and the revival will depend on the agility of "players" in various industries, on how fast the needed changes in the structure of businesses are made, as well as on the efficiency of moves to regain customer confidence, Vasile Iuga believes. "Flexibility is now a key element. Those who will manage to maintain or even boost their turnovers in the crisis period are the ones who have a very good understanding of all organisational processes, they know the market very well and comprehend its messages, they have the capacity and willingness to make such well-informed decisions," stated Iuga in an interview with ZF.
He explained that many domestic companies that have boasted spectacular turnover increases in the past two or three years have not included in their strategies steps that should enable them to successfully cope with a downturn. Romania started to feel the crisis impact in third quarter of 2008, when it was still registering record economic growth, and there was a sudden shift from exacerbated exuberance to a sheer state of pessimism.
The first macroeconomic solutions economies threatened by recession usually resort to are monetary policy and fiscal incentives. However, a too deep monetary policy easing is not recommendable, in Iuga's opinion. He considers that securing financing will certainly be this year's biggest challenge, reminding there are, however, encouraging signals, particularly as regards banks.
From a fiscal perspective, Iuga says businesses should be encouraged. "I've noticed an interesting phenomenon: according to the latest statistical data, in late 2008 and the first two months of 2009 there was a significant rise in the number of new firms". He also believes Romania should commit to speeding up euro adoption.
PwC in the last fiscal year registered 60m dollars, while the number of the company's employees amounts to 650.
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