The 2020 forecast downturn in Romania’s economy suddenly accelerated under the lockdown conditions imposed to tackle the COVID-19 pandemic.
When we polled businesses across Eastern Europe during the pandemic, more businesses in Romania described the negative impact of the pandemic-led economic crisis than the regional average. 55% of businesses in Romania told us about the negative impact on profitability in comparison to the East European average of 43%. When benchmarking revenue and cash flow against the survey results for the region, however, businesses in Romania appeared closer in line to the results reported by businesses in Eastern Europe.
When asked what kind of measures they needed to take to protect their business from the negative impact of the pandemic-led economic crisis, businesses in Romania most frequently told us they delayed payments to suppliers. In fact, this was reported by 52% of the businesses we spoke to in Romania and represents the highest percentage than the average for Eastern Europe, which reported an average of 43% across the region.
Key takeaways from the report
- Trade credit is currently involved in 58% of the B2B sales of businesses surveyed in Romania, down from last year’s pre-pandemic levels of 78%.
- Domestic SMEs continue to enjoy access to trade credit
- Pandemic recession causes overdue invoices to surge by 74%
- Trade credit insurance is considered by 70% of businesses as they prepare for 2021
- Containing costs in 2021 is a big worry for businesses in Romania
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Romania during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Construction materials