Expectations of increased revenues in 2010 come out highest

PanARMENIAN.Net -
Optimism amongst privately held businesses (PHBs) around the world has bounced back to give the Grant Thornton global optimism/pessimism index for 2010 an optimism balance of +24%, compared to its lowest ever score of -16% this time last year. The International Business Report (IBR) survey of over 7,400 PHBs across 36 economies, now in its 18th year, also highlights a group of ten economies where businesses are more optimistic about the outlook for their economies than International Monetary Fund (IMF) forecasts might suggest.



The survey also found that expectations of increased revenues in 2010 came out highest (at +40%) when respondents were asked to rank likely business trends in 2010. Increased turnover was followed by the surprisingly positive view that investment in plant and machinery (+31%) and profitability (+29%) would both increase. Businesses were much less hopeful about selling prices with 21 out of 36 economies less optimistic about increasing their prices than they were in 2009.



Alex MacBeath global head of markets at Grant Thornton International, comments, “This suggests that during the recession businesses have become leaner and more cost effective which may enable them to lower prices while still securing increased revenues and, crucially, profits. As the global economy emerges from recession, we are likely to see many businesses reaping the rewards of recession induced efficiencies to lead the way in the upturn.”



When asked about employment expectations in 2010, European businesses were far more pessimistic than their counterparts elsewhere in the world; a negative balance of -1% in Europe compared to balances of +33% and +42% in Asia Pacific and Latin America respectively.



Grant Thornton Amyot LLC, the Armenian Member of Grant Thornton International, is a multi-professional group of Public Accountants and Auditors, Financial Advisers, Business, Industry, Tax and Legal Consultants.



Grant Thornton Amyot (then Amyot Exco Armenia) was founded in 1991, and has since been providing audit missions, in-depth professional consulting services, expert advice to governmental organisations, top-level enterprises, national and commercial banks in CIS countries: Armenia, Georgia, Belarus, Kazakhstan and Uzbekistan.