Global Business Confidence Up For 2007 - India Tops at 97%; EU Ahead of US: Grant Thornton

Medium to large privately held businesses around the world are considerably more optimistic about the prospects for their economies in 2007 - with an optimism/pessimism balance percentage of +45%, up from +39% last year, according to International Business Report (IBR) from Grant Thornton International published today. 

EU business optimism overtook US for first time in the survey's five year history, with the EU  balance at +46%, compared to a US balance of +14%.  The global average was +45%. 

India remained at the top of the optimism/pessimism league table as it strengthened to an record +97% up from +93% in 2006, as the Asian business owners continue to be the most confident in the world. India, the Philippines, Mainland China and Singapore take the top 4 positions in the survey for 2007. 

Other Highlights:

  • Japan's figures reflect a steady economic recovery over the past five years from an optimism/pessimism balance of -71% in 2003 to just -5% in 2007. 
  • Overall, the International Business Report shows businesses in 29 out of 32 countries are optimistic about their economy's performance in 2007 with 24 being more optimistic than last year. 
  • Turkey has shown a massive drop in optimism in the past year from +58% to 0%, probably reflecting frustrations it has faced in its negotiations to join the EU.

Expectation for Business Growth in 2007:

The positive outlook for the global economy is also reflected in business owner attitudes towards expected growth in turnover for their businesses in 2007, with a balance of +69%. 

  • India leads the way in expectations of growth in turnover with a balance of +90%, followed by Mainland China at 85%.
  • The EU at +57% falls behind the US at +77%. 

"The findings from the International Business Report show a rebalancing of the global economy with increasing optimism in Europe and a more pessimistic outlook from US business owners. However, their level of confidence cannot match the emerging economies, especially India and Mainland China," said Alex MacBeath, Director of privately held business services for Grant Thornton International.

*The confidence figure is the percentage balance of the respondents who are optimistic less those who are pessimistic. The highest possible figure countries are able to record is +100% and the lowest is -100%. 

The survey, which covers the opinions of 7,200 business leaders in 32 countries, represents 81% of global GDP. The research was conducted by Experian Business Strategies Limited and Harris Interactive. To find out more about IBR and to obtain details of IBR reports and results please visit  www.internationalbusinessreport.com.

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