South African privately held businesses (PHBs) are hopeful that the worst of the recession is behind them as the 2010 Grant Thornton global optimism/pessimism index indicates an optimism balance of +60% compared with +35% this time last year.
An ‘optimism balance’ is the proportion of businesses reporting they are optimistic less those reporting they are pessimistic.
“SA business owners are certainly looking with renewed optimism towards the coming 2010 FIFA World Cup year and its associated rewards,” says Leonard Brehm, National Chairman of Grant Thornton South Africa.
The International Business Report (IBR) survey of over 7 400 PHBs across 36 economies, now in its 8th year, also highlights that South Africa expects the turnaround post-recession to occur a lot earlier than most other countries. The IBR statistics indicate that 26% of SA PHB owners expect an upturn during the first half of 2010, with 33% expecting the upturn to take place in the second half of the year – most likely as a direct result of the 2010 FIFA World Cup event in June/July. In comparison, global statistics indicate a turnaround during the second half of 2010 (34%) or only during 2011 (23%).
Tourism- and hospitality-specific results are expected to be released closer to the end of the month.
