KPMG Pulse of Economy 2015

KPMG Pulse of Economy 2015

Survey report

Bosnia and Herzegovina, Croatia, Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia

When plotting out future scenarios for the economy and entrepreneurship, including the views of business leaders is vital.

For the second consecutive year, KPMG’s Pulse of Economy survey reached out to 731 heads of business across a number of countries in Central & Eastern Europe (CEE). Including Bosnia and Herzegovina and Croatia in this year’s edition, we have expanded the number of countries surveyed to nine, enabling us to elaborate on current trends in these markets.

staff number and salary changes

In several areas, this year’s survey results overlap with those from 2014. At a time when Europe is facing many economic challenges, the most important and encouraging conclusion is that respondents largely see a healthy economic environment for 2016. About half of the survey participants believe that the economy will improve next year, while only 15% think the situation will deteriorate. Inflation, they say, will be mostly contained, not exceeding the 2% threshold, and about two-thirds plan to resume investments in the next 3 years.

Moreover, 79% of the entrepreneurs and managers who participated in our survey also expect simplified tax payment and administration procedures from their governments, and strong sentiment was expressed in favour of a flat personal income tax system: by half of respondents. Education, science and innovation should receive priority in governments’ fiscal planning, they say.

staff number and salary changes

Business leaders have also expressed clearly that without good, skilled people success is unthinkable, while about three-quarters believe retaining staff is a key aspect companies should focus on. Finally, about half of respondents intend to keep staff numbers mostly unchanged, and for employees, the salary outlook for 2016 appears rather promising with 58% of the CEE respondents planning increases in remuneration.

We are confident that these observations and the additional insights included in the survey are likely to be relevant to your business and encourage you to contact us about anything you may wish to discuss.

Spill Steve

Stephen Spill
COO, KPMG in Central & Eastern Europe

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