By Rob Starr, Content Manager, Big4.com
Paul Raleigh, Global leader of growth at Grant Thornton International, said: “It’s tricky to pin an exact figure on the total revenue lost as a result of the eurozone crisis. But our calculations, based on the IBR results and the proportion of global GDP accounted for by corporate revenues, suggest that businesses have lost close to US$2trillion as a result of the crisis.
“Clearly the crisis is doing far more than stifling sentiment in the region. Businesses are also losing money and their growth prospects are suffering, not just in Europe but across the globe.”
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.
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.