Romanian companies are already feeling the indirect effects of the crisis in the Middle East. This is shown by a survey by the National Council of Small and Medium-Sized Private Enterprises in the country, conducted between March 9 and 19 and quoted by the newspaper “Adeverul“, BTA reported.
Almost 76 percent of entrepreneurs expect a significant increase in operating costs. Nearly 50 percent are of the opinion that they will have to increase the prices of products and services, which could cause a wave of price increases in the economy.
The main reason for the tension is the increase in fuel prices, which directly affects transportation costs and, implicitly, on final prices, the newspaper “Adeverul“ notes. According to 62.7 percent of respondents, the increase in the price of gasoline and diesel is the biggest problem.
In recent weeks, the price of fuel has increased by approximately 1.5 lei/liter (0.29 euro cents/liter), and this could lead to an increase in transportation costs by 15-25 percent, depending on the field of activity.
Given that transportation is a major component of the final price of almost every product, the effects are quickly spreading throughout the economy, the media commented.
Approximately two-thirds of entrepreneurs predict a decrease in purchasing power, which means fewer customers and lower sales, so the pressure on companies is double: costs are increasing, while their revenues are threatened.
In this context, over 25 percent of companies are already considering reducing investments, which signals a possible slowdown in the economic pace and forced adaptation to the new conditions.
The impact on the labor market is also extremely strong: hiring is frozen and some companies are even considering layoffs to cope with the increase in costs.
This situation puts entrepreneurs in a difficult position, leading them to demand rapid intervention from the authorities. Over 71 percent of those surveyed call for a reduction in excise duty on fuels, and almost half want compensation schemes for hauliers and farmers.
Other proposed measures include state-guaranteed loans and capping energy prices, but economists warn that the wrong intervention, such as a sharp cap, could lead to shortages, as is already being seen in some European countries.
In conclusion, the study shows that although the conflict is thousands of kilometers away, its effects are quickly reaching the pockets of Romanian companies and consumers.
The survey was conducted between March 9 and 19. 1436 entrepreneurs participated in it.