• Skip to content
  • Skip to navigation

Grant Thornton uses cookies to monitor the performance of this website and improve user experience

To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Namibia
  • Nigeria
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Bahamas
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Dominica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • Turks and Caicos Islands
  • United States
  • Uruguay
  • Venezuela
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • North Macedonia
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Lebanon
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
Grant Thorton Logo

Grant Thornton Logo Grant Thornton logo

  • About Us
  • Insights
  • Services
  • Meet our people
  • Careers
  • News Centre
  • Contact us
  • Advisory
  • Audit
  • Tax & VAT
  • Business Process Outsourcing
Advisory Home
  • Transformation Advisory
  • M&A and Transactions Advisory
  • Forensic
  • Restructuring
  • Incorporation and Compliance
Business Process Outsourcing Home
  • Outsourcing services
  • Grant Thornton UAE
  • News Centre
  • 2014
  • Economic optimism highest since 2007

Economic optimism highest since 2007

24 Apr 2014
  • Economic optimism highest since 2007

But businesses still dragging heels on investment

Economic OptimismNew research from the Grant Thornton International Business Report (IBR) [ 730 kb ], a survey of more than 3,300 businesses in 45 economies, reveals a spring surge in business optimism, with all global regions marching in step, despite a slowing of growth in some emerging economies. The data suggests that the recovery is moving onto a more sustainable footing and, with economic uncertainty declining, the hope is that businesses will renew investment in the coming months to ensure long-term growth.

The IBR reveals that net 44%  of businesses globally are optimistic for the economic outlook, the highest since 2007, and a 17 percentage point increase from the previous quarter. And this confidence is in evidence across the globe: in North America (64%) optimism is at its highest since 2004, and in the EU and Asia Pacific (both 37%) since 2007 and 2008 respectively. In Latin America optimism rebounded from a four-year low in Q4-2013 to net 43%.

Furthermore, the proportion of businesses globally citing economic uncertainty as a constraint on ability to grow is down from 42% to 38% over the past three months.

Ed Nusbaum, Global CEO at Grant Thornton, commented: "The IBR data provides strong hope that the global recovery is starting to take hold. The rise in optimism closely mirrors recent growth of stock markets around the world - the S&P 500 closed at a new record high earlier this month. We have moved into the first prolonged period of economic stability since the financial crisis and while challenges remain (particularly in the eurozone, Ukraine and some emerging markets) firms can think and plan for the longer term.

“Importantly, business communities in five of the world's largest economies – the US, China, Japan, Germany and the UK – have all seen tremendous rises in confidence over the past three months. As major powers with significant cross-border ties, a more positive outlook in these economies is bound to trickle down to their trading partners and boost the global economy.

“With the IMF predicting robust global growth of 3.6% this year, we believe conditions are perfectly poised for dynamic firms to begin to invest more. We expect to see this pick up during the rest of 2014. There has been a marginal improvement in plans to invest in plant & machinery, but R&D has remained flat and not increased in line with optimism. As IMF Managing Director Christine Lagarde said recently, greater investment needs to happen if this new found optimism is to be converted into meaningful growth.”

For the first time, business leaders in Ireland (94%) are the most optimistic in the 45-economy survey. Elsewhere, the US (up 30 percentage points to 66%), China (up 16pp to 38%), Japan (up 11pp to 17%), Germany (up 14pp to 65%) and the UK (up 12pp to 83%) all report soaring optimism. 

Ed Nusbaum added: “The turnaround in Ireland is remarkable. We have seen a steady increase in business optimism over the past two years and now that the country has exited its EU bailout programme, confidence has rocketed. Around two thirds of business leaders in Ireland now expect to increase profits in the year ahead, up from just a quarter this time last year. 

“However, the situation in Ireland, as in much of the eurozone, remains fragile, and while unemployment continues to fall, the economy actually showed a small contraction in Q4 and personal debt levels remain high. However, there’s a lesson other economies can learn from the way policymakers have implemented a bold and decisive recovery plan. For local businesses, the hope is now that the months of painful adjustments are finally starting to bear fruit.” 

- ends -  

John Vita, Director, public relations and external affairs, +1 312 602 8955

Dominic King,  Editor, global research, +44 (0)20 7391 9537

Share this page
  • Facebook LinkedIn
  • Twitter Twitter
  • LinkedIn LinkedIn
  • WhatsApp WhatsApp
  • Email Address Email
  • Grant Thornton on Youtube
  • LinkedIn icon
  • Twitter icon
ABOUTclose
  • About us
  • Services
  • Careers
  • Insight
  • News centre
CONNECTclose
  • Meet our people
  • Contact us
  • Our Offices
LEGALclose
  • Privacy Policy
  • Disclaimer

© 2021 Grant Thornton UAE - All rights reserved. “Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UAE is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

    • EN