Austrian business mostly pessimistic on CEE business climate in 2023
The state trade promotion agency, conducted a survey revealing that over half, precisely 54%, of Austrian enterprises operating in Central and Eastern European (CEE) countries predict a decline in economic conditions in the next 12 months, while only 11% anticipate an improvement.
Austria's Global Business Barometer 2023 survey found that in the past year, 49% of respondents reported a decline in economic conditions and general conditions in the country where their subsidiaries are located.
The survey gathered data from 1,797 companies operating in 51 countries in North and South America, Europe, and Asia, with the CEE area accounting for Austrian subsidiaries in Bulgaria, Croatia, Bosnia, Czechia, Hungary, North Macedonia, Poland, Romania, Serbia, and Slovakia.
Market-based and regulatory conditions related to infrastructure and digitalization were the most promising factors, with 60% and 50% of companies, respectively, expecting excellent or rather good conditions. In contrast, the availability of skilled labor and the cost of raw materials received mainly negative assessments.
Among over 100 Austrian company executives operating in Bulgaria, 47% had pessimistic expectations for the business environment in 2023, relatively unchanged from the previous year's 45%, owing to the impact of the ongoing conflict in Ukraine, supply chain disruptions, and an energy crisis. About 41% do not foresee any significant changes, while 12% anticipate an improvement.
Looking forward, only 36% of company executives predicted growth in turnover from Bulgarian operations in 2023, compared to 65% who reported turnover growth in 2022. The survey polled executives from A1, EVN, OMV, Uniqa, Palfinger, and Vienna Insurance Group – Bulstrad.
According to Advantage Austria, Austria accounts for the second-largest share of investments in Bulgaria, amounting to €5 billion ($5.4 billion), according to central bank data.
The state trade promotion agency, presented the results of its Global Business Barometer 2023 survey, which polled 1,797 companies operating in 51 countries in Europe, North and South America, and Asia, revealing that 54% of Austrian companies active in the Central and Eastern European (CEE) markets predict a further deterioration in the economic climate in the countries where they have subsidiaries over the next 12 months. Only 11% of those surveyed anticipate any form of improvement.
The report highlights that over the past 12 months, almost half of the respondents, amounting to 49%, reported the economic conditions in the countries where their subsidiaries are based had deteriorated.
