Analysis
Positive Outlook for Slovakia
Bratislava, 5 March 2015 – In connection with economic growth in Slovakia, CFOs’ expectations are much more optimistic than the previous year. The moderate growth of the Slovak economy (i.e. year-on-year growth of 1.5% to maximum 3%) is expected by almost 70% of respondents of the sixth Central Europe CFO Survey 2015.
CFOs are more optimistic with regards to unemployment in Slovakia as well. A moderate decrease of unemployment is predicted by 48% of CFOs. Thirty percent of CFOs do not expect unemployment to change. On the other hand, 22% of CFOs now predict a slight increase in unemployment, while in 2014 such expectations were 39%.
“In general, companies’ financial prospects are slightly optimistic, too. 47% of CFOs expressed a positive opinion for the next six months, only 26% of them were negative,” said Peter Horovčák, Consulting Director of Deloitte in Slovakia. That many CFOs remain cautious is a reasonable approach, since turbulent developments persist in many economic, geopolitical and policy issues.
“A key business focus for companies in Slovakia over the next 12 months is revenue growth on current markets, to which 61% of CFOs assigned the highest or second highest priority. The next is cost reduction of direct costs with 55% and third is revenue growth on new markets with 44%,” said Peter Horovčák. “Even though CFOs strongly prioritize revenue growth, only 21% prioritize the new investments that should serve as the main driver of revenue growth,” he added.
Key findings – Slovakia
- Almost 70% of the country’s CFOs expect the Slovak economy to increase moderately (i.e. year-on-year growth between 1.5 - 3%); this is an increase of 24% since the autumn 2014 survey
- In the area of corporate transactions, half of CFOs expect the same level of moderate increase compared to last year
- Compared to the 2014 survey, there is a significant decrease in prioritizing business remodeling or restructuring over the next 12 months
- A key business focus for companies in Slovakia in 2015 will be revenue growth (38% of CFOs’ priority) both on current and new markets
- CFOs expect the standard degree of financial and economic uncertainty
- More than 50% of CFOs are more optimistic concerning the ability to repay company debts
- CFOs’ expectations in relation to talent shortages in the financial sector are very similar to the 2014 survey – half of respondents expect a lack of talented and skilled workforce
This report compares the expectations of CFOs from 14 Central European economies – Albania, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia. It is based on the answers of 560 CFOs from a broad range of industries.
For more details click on www.deloitte.com/cecfo