Business optimism in markets such as China, the UK and the US has risen markedly over recent months according to the Grant Thornton International Business Report (IBR)[1]. And the most interesting aspect for me is the contribution of the real estate and construction sector to the brightening economic outlook.
The Chinese economy is slowing. The days of rampant, double-digit expansion are in the past as we move away from massive investment and export dependency towards a more sustainable, consumption-driven model of growth. This rebalancing offers both challenges and opportunities for dynamic organisations. How these businesses adapt to the changing environment will be key to their growth prospects.
There was some great news for Chile in the latest edition of the Grant Thornton Global Dynamism Index (GDI): we ranked second out of 60 economies, behind only Australia.
According to our Global Dynamism Index (GDI) 2013, Australia is the economy businesses should be looking at. It climbed to the top of the ranking of 60 of the largest economies in the world this year, up from seventh place in 2012.
Reviewing the Q2 International Business Report (IBR[1]) results, I was pleased to see some good news for construction & real estate companies: Profitability expectations around the world are up. However, my optimism is tempered somewhat by recent news from China and it will be interesting to see how businesses react in Q3.
The brightening outlook for Spain. Rising exports amongst reasons to be optimistic
Last week, the International Labour Organisation (ILO) released their annual World of Work report. It contains some stark warnings, particularly for mature economies where it does not expect employment levels to return to pre-crisis levels before 2017. Getting people back into work, the report says, will be a “major global challenge” for years to come and the threat of “social unrest” a major risk.
Writing our recently released Future of Europe report, the thing that stood out to me most was the divergence of business opinion on how to handle the eurozone crisis. And not just between the 17 euro ‘ins’ and the 10 euro ‘outs’ – which you might expect – but a split right at the heart of Europe.
