Global Businesses Look to 2013 with Renewed Confidence, According to Research
from FTI Consulting
Business Leaders Recognise the Need to Invest in Innovation to Overcome Low
Banking Sector Rebuilding Trust with the Business Community
Survey Highlights Global Business Support for a 'Brexit'
Business Leaders Recognise the "Two Super Power World," with China Edging
Ahead of the United States
DAVOS, Switzerland, Jan. 21, 2013
DAVOS, Switzerland, Jan. 21,2013 /PRNewswire/ -- Global business leaders
have entered the New Year feeling surprisingly confident about future growth
prospects, according to the latest research from FTI Consulting, Inc. (NYSE:
FCN), the global business advisory firm dedicated to helping organisations
protect and enhance their enterprise value.
In a poll of more than 1,000 business leaders in major global economies, FTI
Consulting found that 77% of respondents are optimistic about significant
global economic growth in 2013.This compares with 45% optimism expressed in a
similar poll conducted in January 2012.The optimism is fairly evenly spread
across the regions: 76% in Europe, 78% in North America and 75% in Asia.
With business leaders feeling more secure about global economic prospects for
2013, executives are anticipating some growth for their own businesses.62% of
respondents to the FTI Consulting poll expect increasing growth and prosperity
for their own organisations: 48% in Europe, 71% in North America and 61% in
Asia. Furthermore, 61% expect growth of over 2% in the coming year, while 10%
are expecting growth of 10% or more.
The FTI Consulting poll also found there still is appetite for acquisitions,
with 42% of respondents saying they will make an acquisition in their own
region and 37% outside their own region. Innovation will be a key theme for
2013, with 57% of respondents planning to invest in innovation to combat low
growth in 2013.The focus on innovation is most pronounced in Europe: 61%
compared with 53% in North America and 49% in Asia.
The general feeling that the economy has started to turn the corner is further
demonstrated by a surprisingly positive attitude towards the banking
sector.89% of global business leaders believe the banking sector in their
home country has a positive reputation, and 85% feel the banking sector
globally is in a good state.Nearly five years after the collapse of Lehman
Brothers, 70% of respondents are confident there is a strong enough global
regulatory framework in place to prevent the risk of another banking crisis.
When asked about threats to growth, 58% of respondents remain concerned about
ongoing problems in the Eurozone, with a further 49% concerned about the
negative trickle-down effect from the ongoing fiscal problems in the United
States, 48% concerned about the ongoing credit crisis and 43% concerned about
slowing growth in China.The BRICS (Brazil, Russia, India, China and South
Africa) appear to provide some salvation to these risks and threats, with 58%
of global business leaders polled believing the biggest opportunities in 2013
are in these countries.
"Having spent the past five years grappling with the global banking crisis,
the Eurozone crisis and recession, businesses appear to be ready to move
forward," said Mark Malloch-Brown, EMEA Chairmanat FTI Consulting."While
there still is concern about ongoing problems in the Eurozone and the
trickle-down effect from the inevitable spending cuts in the United States, we
are anticipating a lighter mood at Davos this year compared with 2012, when we
were facing a possible Armageddon following a collapse in the Eurozone.
Businesses seem to have the measure of potential threats, are looking to
exploit opportunities in emerging markets and feel positively about the new
leadership in China."
Other findings from the FTI Consulting poll
Survey highlights global business support for greater distance between the UK
and the European Union
With the UK government set to tackle its relationship with the European Union
(EU), the FTI Consulting poll shows UK business leaders are split on the idea
of the so-called Brexit, with 54% believing such action would be better for
the UK economy. Global businesses, however, are stronger in their support for
a looser connection between the UK and Europe: 66% of business leaders believe
the UK would be better off with greater distance between the UK and the EU.
The FTI Consulting research further highlights a split of opinion between
business leaders within and those outside of Europe. 43% of European business
leaders believe the UK economy would be stronger if there was greater distance
between the UK and the EU, with 71% stating their own businesses would suffer
if the UK cut ties with the EU. By contrast, 74% of business leaders globally
claim the UK economy would be better with greater distance (driven by 76% in
North America and 80% in Asia), and 53% claim their own businesses would
benefit if there was greater distance between the UK and the EU. In either
scenario, 70% of those outside the EU claim the UK will increase in importance
as a gateway to Europe in 2013 (driven by 78% in North America and 74% in
"While we always would expect a split on the Europe question among UK
business, it is surprising that businesses in North America and Asia take such
a strong anti-Europe view on behalf of the UK economy," explained
Malloch-Brown. "It is possible that the Europe brand has been so tarnished by
the Eurozone crisis and drawn-out attempts to strengthen the European
regulatory framework that observers in major economies believe the UK would be
better off going it alone."
Business leaders recognise the "two super power world," with China edging
ahead of the United States
The elections in the two largest global economies, China and the United
States, appear to have created a sense of stability in the minds of global
leaders.According to the FTI Consulting research, 81% of global business
leaders entered 2013 believing President Xi Jinping will have a positive
effect on the global economy, and 83% think the same about President
Obama.79% feel Xi Jinping will enhance sentiment around the Chinese economy,
and 76% believe Obama will have a positive effect on general sentiment around
the U.S. economy.
At the same time, there appears to be recognition of the growing influence of
Chinese political leaders, with 80% believing Xi Jinping will enhance the
ability to do business in China.
About the Research
Research was conducted by the Strategy Consulting and Research team at FTI
Consulting from 2-5 January 2013, with 1,031 C-suite executives involved in
strategic decision making for their commercial organisations.Respondents were
drawn from affiliate panel databases and represent 15 major economies in
Europe, North America, Australia, Asia, South America and Africa.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping
organisations protect and enhance enterprise value in an increasingly complex
legal, regulatory and economic environment. With more than 3,800 employees
located in 24 countries, FTI Consulting professionals work closely with
clients to anticipate, illuminate and overcome complex business challenges in
areas such as investigations, litigation, mergers and acquisitions, regulatory
issues, reputation management, strategic communications and restructuring. The
company generated $1.56 billion in revenues during fiscal year 2011. More
information can be found at www.fticonsulting.com.
SOURCE FTI Consulting
Contact: Kathryn Bowditch, +44(0)20-7269-7185, or +44(0)7920-824-725,
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