Back to Europe rising?

European business: Overcoming uncertainty, strengthening recovery

Back to Europe rising?

European business: Overcoming uncertainty, strengthening recovery

The past decade has been one of the toughest in the post-war era for the European economy, but an MGI survey of 2,000 C-suite executives in France, Germany, Italy, Poland, Spain, and the United Kingdom revealed a new sense of optimism about the region’s economic growth and prospects for their companies.

On average, respondents said they expected revenue growth of 2.1 percent in the coming year, with about one in five companies—especially larger, more internationally focused ones—predicting revenue growth above 5 percent. However, this optimism was tempered by doubts and uncertainty about the future—which in turn are acting as a brake on corporate investment in Europe and leading to many companies across sectors hoarding cash.

Exhibit

Cash position of EU firms with regard to both savings and investment as a percent of GDP from 2000 to 2015, and survey responses on reasons for increasing cash position

In the media

Article

Euractiv: Building on Europe’s nascent recovery

The economic recovery has boosted business confidence in Europe and now the message is clear: businesses want strong cooperation and a new vision for the future of Europe, writes Jacques Bughin in EurActiv.com.
Article

Vox: Reviving investment in Europe: How to explain (and overcome) continuing business reticence

Article

Friends of Europe: Rethinking Europe in the light of “glob-alone-isation”

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