German-Romanian business confidence declines as economic outlook worsens, AHK survey finds

Expectations for Romania’s economic performance have deteriorated significantly among companies in the German-Romanian business community, according to the 2025 business survey released this spring by AHK Romania, the Romanian-German Chamber of Commerce and Industry.

The share of companies with a pessimistic view of the Romanian economy rose from 38% in 2024 to 57% in 2025, reflecting heightened uncertainty and concerns about market conditions. 

While the outlook for individual business performance remains unchanged for 38% of respondents, only 37% anticipate economic improvement this year, compared to 40% in 2024.

Most companies (62%) described their current business situation as “satisfactory,” a marginal increase from 59% last year. However, optimism continues to decline, with only 28% rating their current position as good, down from 33% in 2024 and continuing a three-year downward trend.

The survey also points to a notable drop in investment intentions. In 2024, 46% of companies planned to maintain their investment levels, but this figure has fallen to 38% in 2025. Furthermore, 30% of companies reported plans to reduce investments this year, up from 20% in 2024.

Labor market sentiment has also shifted, with 34% of companies indicating they would reduce staff in 2025, compared to just 18% the previous year. Meanwhile, 41% plan to maintain their current headcount, the same proportion as in 2024. Companies cited declining demand and increasing cost pressures as primary reasons for the planned workforce reductions and the push to increase productivity.

“Companies are more cautious, which is reflected in the investment and employment decisions,” AHK Romania stated in the report. 

The survey results reflect broader concerns across sectors, particularly in manufacturing and services, regarding inflation, regulatory instability, and geopolitical risks.

iulian@romania-insider.com

(Photo source: Yunkiphotoshot/Dreamstime.com)


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