Central Europe CFO Survey 2016

How was the study conducted?

This annual questionnaire tracks the latest thinking and actions of CFOs representing largest and most influential companies in the Central European region. It explores top-tier CFO issues across four areas:

• business environment,
• company priorities and expectations,
• finance priorities,
• personal priorities.

The findings discussed in this report represent the opinions of almost 500 CFOs based in 11 Central European countries: Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia. The survey was conducted between August and October 2015.

What are CFOs telling us?

• 35% of Central European CFOs expect GDP growth of 1.6 - 2.5% in 2016.
• Almost half of the CFOs who are both based in Central Europe and members of the monetary union believe that the Greek crisis is having a negative impact on the stability of the eurozone.
• 52% of respondents described the current level of financial and economic uncertainty as normal, a fall of 20 percentage points from the previous year.
• 52% of Central European CFOs predict increased M&A activity in the year to come.
• 51% of respondents stated that the financial health of their companies has improved in the last six months.
• 65% predict that their companies will increase turnover within the next 12 months, while 40% anticipate an increase in margins, capital expenditure and employment.
• 43% of respondents believe that the debt-servicing capabilities of their companies will improve over the next three years.
• 71% of participating CFOs feel that now is not a good time to take large investment risks. 

CFO Survey - Serbia

• Even though the unemployment rate in 2015 went down when compared to 2014, 55% of respondents think that the current level of unemployment will increase in the next 12 months.
• With regard to the financial prospects of their companies, more than 48% of the respondents have declared they are optimistic, while 29% think that the situation will remain the same.
• One in three CFOs feels that new credit is difficult to obtain, but there is a positive shift in those that believe that the availability has improved as evident by 19% believing that new credit is easily available.
• For the next 12 month period, companies will focus on revenue growth in current and new markets and reducing direct costs.
• Business remodeling or restructuring is likely to be a high priority for 32% of businesses over the next 12 months, while 26% of companies do not think it will be their priority this year.