Joining the EU shrinked profits of Romanian companies, prognosis commission shows

The 26.3 percent net profit hike posted by Romanian companies in the first half of last year was sluggish compared to the same period of the previous year and the percentage of profitable companies continued to slump, according to National Forecast Commission (CNP).

The profitability of the Romanian companies over 2007 was somewhat affected by Romania's participation to the sole European market with higher competitiveness and quality standards, CNP shows.

Losses in H1 2007 hiked 30.3 percent in nominal terms from the same period in 2006 which triggered a 29.2 percent advance of wage spendings. The amplification could be explained by the increase of salaries caused by the labor force deficit in certain fields, according to CNP.

The profitability rate advanced only 0.1 percentage points to 6.4 percent in H1. The profitability rate stands in the difference between profit and losses compared to revenues. According to CNP, the relaxing of the fiscal policy contributed to the growth of the Romanian companies' profitability.

NewsIn