Heading into 2012, global business confidence is balancing on a knife edge, according to Grant Thornton’s International Business Report (IBR), a survey of both private and listed businesses.
As the Eurozone crisis dominates the global economic outlook, it is feared that business growth will be more difficult than last year.
Drawn from interviews with 2,800 global businesses from November to December, the survey revealed that global business optimism stood at net zero percent in Q4 2011.
The optimism level had plunged to minus four percent, from plus 56 percent.
The report said businesses in Malaysia, as well as in neighbouring countries, were less optimistic about the economy this year.
Singapore’s optimism level hit negative four percent, while Thailand’s dropped to negative 52 percent, after the massive floods severely affected automobile and electronic factories.
“Heading into 2012, we’re seeing a polarisation of business confidence between Europe and the rest of the world. However, the threat of total meltdown in the Eurozone means business leaders remain uncertain about the year ahead – they simply do not know how things will turn out,” said Datuk N Jasani, Managing Director at SJ Grant Thornton.
“That uncertainty is sapping confidence and choking business growth prospects. Policymakers in Europe have some job on their hands in 2012.”
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