German companies operating in Central and Eastern Europe are satisfied with the economic situation, according to a recent study conducted by the German Chamber of Industry and Trade (DUIHK). More than 1,600 managers participated to the survey.
Given the strong economic growth, the outlooks for the national economy, the sector and the company in particular have improved in all countries in the region, according to the 1,698 respondents who participated to the study, a press release sent to Budapest Business Journal says.
On a regional level, the current economic situation and the outlooks for this year have not been this high since the period preceding the crisis in 2007.
The respondents estimate that the strong GDP growth, between 3% and 7% in the region will remain this year. Based on the high domestic and foreign demand, German companies are planning more investment and more hirings in most of the countries.
However, there are problems also, mainly related to the qualified labor force. The most acute labor shortage is experienced in Czech Republic, Hungary, Slovakia and Bulgaria. Managers are also unsatisfied with taxation, the rule of law, corruption and transparency of public procurements, with corruption ranking very high in the top list of unsatisfactory factors.
Despite the shortcomings in some areas, the majority of German companies (four out of five) consider that their location choice has been a good one. As for the best investment location, Czech Republic ranked first in manager preferences, followed by Poland, Slovakia and Estonia
The full study is available here.