By Rob Starr, Content Manager, Big4.com
Four in ten businesses globally say the eurozone crisis has had a negative impact on their business, according to the latest Grant Thornton International Business Report (IBR). This is estimated to have wiped US$2trillion off revenues globally. With the crisis still rumbling on, the research also highlights the long-term damage to the prospects of the EU as businesses consider doing less trade in the region in the future.
Although businesses in Europe have suffered the most acute effects of the eurozone crisis, the IBR reveals that the impact has spread widely and had considerable effect in other regions. Around one in three business leaders in the BRIC economies (36%), Asia-Pacific (34%), North America (31%) and Latin America (30%) cite a negative impact.
Perhaps more worryingly, 17% of businesses globally now say they are less likely to do business in Europe as a result of the crisis. This compares with just 10% when businesses were asked the same question about the Middle East & North Africa in 2011 following the Arab Spring. Some of those most likely to stay away from Europe are businesses from Turkey (30%), China (25%), South East Asia (24%) and Latin America (18%).
According to the IBR, the impact of the eurozone crisis on business revenues has been severe: more than half of those negatively affected (54%) say their revenues have dropped by more than 3% as a result of the crisis, and one in three (32%) say they have taken at least a 6% hit. In the United States, the world’s largest economy, 11% of businesses say the crisis has caused their revenue to fall by 10% or more.