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.
“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,” said Paul Raleigh, Global leader of growth at Grant Thornton International. “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.”
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%).