Global economic growth is returning after the GFC, but full recovery will not occur until December 2010, according to the latest edition of the bi-annual Regus BusinessTracker survey.
However, respondents, who were asked “When do you expect economic recovery and growth to be advancing strongly and reliably in your country?” have now shifted their expectation of the full momentum of economic recovery back five months, from July to December. In Australia specifically, net growth companies are positive at 29 percent, but optimistic recovery expectations have shifted a little from June 2010 to September 2010.
In Australia the survey found that 25 percent more medium sized businesses than the global average (42 percent) had experienced a rise in revenues, as a result large businesses were 40 percent more bullish than the global average about the recovery taking place in the first half of 2010 (globally 14 percdent).
When asked about the measures they believed would be most effective in aiding the recovery, 78 percent of small businesses (globally 64 percent) advocated additional tax breaks for businesses suggesting that this measure may help smaller businesses improve their revenues and profitability on a par with their larger counterparts.
The survey also analysed sector differences, finding that here in Australia where we have a higher level of confidence, the media and marketing sector is 36 percent more positive than the global average that the recovery will take place as soon as the first half of 2010. With the Australian banking system’s strength, commodities demand from China and prompt policy response it is not surprising that the recovery could start much sooner in this economy.