World business optimism falls sharply in 3rd quarter

YEREVAN, October 24. /ARKA/. Business optimism dropped sharply all over the world in the 3td quarter of 2012, bank.ru website reports referring to the results of the international survey by Grand Thornton International. More than 3,000 heads of companies from 41 countries, including a hundred Russian top managers, were respondents in the poll conducted in August-September 2012.

According to the survey, the main reason of the weakened optimism is the unsolved problems of the three biggest economies – the USA, China and Euro zone. 

For example, the share of optimists in the United States has dropped from 50% down to 19%. The uncertainties are caused by the upcoming presidential elections and the reduced tax privileges along with reduction in government revenues.

Positive expectations in China are currently a third of the previous optimism – they dropped from 33% down to 11% - against the background of slowing down economic growth and export. 

European business optimism continued dropping from minus 2% in the 2nd quarter down to minus 3% in the 3rd quarter, which demonstrates weak hopes to overcome the crisis.

The level of optimistic expectations dropped also in Russia in the period – from 14% down to 5%. About 80 percent of company-respondents expressed no intention to make investments in the near future and preferred increasing or maintaining their cash reserves within the next 12 months.

Businessmen suggest governments introducing various incentives, such as tax privileges, and increasing government investments. Russian businessmen expect that the government introduces tax vacations and provides better education, higher labor grade, lower interest rates and government guarantees.-0-