The world is still suffering from an economic slump, but confidence and business outlook across the globe is beginning to see a marked improvement.
According to research by international law firm Eversheds, published on December 14th, there is a resurgence in business confidence and future outlook across key global economic centres, and the Eastern markets are showing the most significant improvements. The report engaged 600 senior executives to show the effect of the economic downturn and its results on their confidence in London, New York, Shanghai, Mumbai and the United Arab Emirates (UAE).
The study reports that executives in Shanghai, UAE and Mumbai have highest levels of confidence for the next 12 months, though all respondents believe that New York will continue to be the most significant financial centre in the coming 10 years, followed by London and Shanghai.
According to the report, London has the lowest levels of confidence, with only 22 percent seeing a positive economic outlook for the next 12 months. Comparatively, 92 percent of respondents in Mumbai and 91 percent in Shanghai foresee positive economic changes. According to the opinions of the majority of respondents in Mumbai and New York, business taxation is the primary barrier to growth. The lack of regulation protecting business was seen as the main obstacle to business growth in Shanghai and UAE, though the large volume of regulation was seen as a growth inhibitor in London.
Summarising the report, the research indicated that “…the business world will be definitely smaller post-recession and the old economic order has changed. For businesses that trade on an international scale, the challenge will be to adapt and survive in the face of fierce competition”.
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