More than 60 countries around the world are expected to record lower output in real terms in 2010 than in 2008, according to Dun & Bradstreet’s (B&B) latest risk report.
The report – Risk 2010 – released today, states that the complex recovery, which has begun to take hold, will persist in 2010 as the world economy continues to depend on various emergency supports.
D&B’s forecasts indicate that almost half of the 132 economies examined will record lower output in real terms in 2010 than in 2008. Australia is one of the countries forecast to record lower growth, with a real GDP growth forecast of 1.8 percent as compared to the 2.5 percent growth recorded two years earlier. In addition, recessions are forecast in 13 economies in 2010 and a further four economies are not expected to grow at all.
According to Christine Christian, D&B’s CEO, 2010 looks significantly more positive than 2009 however, risk will remain prevalent as the recovery continues to unfold.
“Australia has fared relatively well throughout the past two years, a time when many other nations felt the full brunt of the global crisis…however, risk is still prevalent,” she said.
“If Australian firms are to deliver on this confidence, they must maintain a vigilant focus on the fundamentals of sound business management. Otherwise, businesses could find themselves as another statistic on the failed business register,” she added.
The D&B report warns that businesses remain vulnerable to financial stress and failure in the early years of economic recovery following a downturn.