Almost three months on from the launch of the European Central Bank's quantitative easing programme, new research from the Grant Thornton International Business Report (IBR) reveals a jump in business optimism in the eurozone in the first quarter of 2015, with confidence moving back up towards pre-crisis levels. Many of the economies hardest hit by the financial crisis, such as Ireland and Spain, are increasingly optimistic about their growth prospects although the global picture is mixed, with Latin America falling to an all-time low.
The IBR shows that net 34% of business leaders in the eurozone are optimistic in the economic outlook, up from just 13% in Q4-2014 and just 5% in Q3-2014. The resurgence has been driven largely by improvements in Spain (52%), Italy (32%) and Ireland (92%) with the latter currently the most optimistic business community in the world. German businesses remain bullish (59%) with their French peers (-15%) still overwhelmingly pessimistic, although less so compared with the previous quarter.
Expectations for increasing revenues and profits are high in each of these three economies. In Spain, 59% of businesses expect to increase revenues over the next 12 months, and 50% expect profits to go the same way. Ireland is even more buoyant with 70% positive on revenues and 66% on profits. Italian businesses are slightly less bullish but have posted double digit climbs in both indicators over the past three months.
Globally, the increase in optimism in Europe is mitigated by sharp downturns in Latin America and Eastern Europe. Driven by Brazil (-18%), Latin America has fallen to an all-time low of 5%. Business confidence in Eastern Europe has dropped to just 6% with Russian businesses increasingly pessimistic (-6%).
Notes to editors
The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of more than 10,000 businesses per year across 36 economies. This unique survey draws upon 22 years of trend data for most European participants and 11 years for many non-European economies. More information: www.grantthornton.global
Contacts:
Grant Thornton International
John Vita, 312-602-8955
Director of Public Relations and External Affairs
John.vita@gti.gt.com
