SPONSORED – One of the big-four accounting giants, Ernst & Young, has reported that the global economy is likely to fall into recession by the next six months, triggered by a series of eurozone debt defaults.
According to a study conducted by Ernst & Young, globalisation may have brought about rapid expansion and increased connectivity between world markets, but it has also been the key source of vulnerability in the global financial system.
Evidenced by financial contagion in recent years, the report It’s a Bumpy World features nearly 1,000 global business leaders and executives, with half of them collectively predicting a global recession by the end of 2012.
In addition, two-thirds of those surveyed predict a new financial crisis triggered by a wave of eurozone debt defaults.
Highlighting the need for alternative growth strategies as global prospects shrink, Chairman and CEO of Ernst & Young, James Turley said:
"In any volatile situation, size and strength aren’t advantages – speed and agility are. So companies must develop highly nimble operating models that enable them to respond to new opportunities and new threats. Doing so quickly will require the right balance of local and global decision-making. At the same time, new competitors are emerging. Companies from rapid-growth markets are investing in innovation and expanding worldwide."
More importantly, he said:
But how can you predict change in an unpredicatable world?
Find out how Ernst & Young support companies, helping them to meet their goals and to compete more effectively in their industry even in uncertain economic times.
Download the full report “The World is Bumpy: Globalisation and New Strategies for Growth” here: http://unr.ly/KHJESo
About the report
The world is bumpy: globalization and new strategies for growth draws on three sources of original research: The 2011 Globalization Survey, an online survey of 992 global business executives conducted for Ernst & Young by the Economist Intelligence Unit; in-depth interviews with senior executives and high-level experts conducted at end-2011; and data from Ernst & Young’s Globalization Index 2011, which measures the 60 largest countries by GDP according to their degree of globalization.
Disclosure: This article is sponsored by Ernst & Young: A global leader in assurance, tax, transaction and advisory services.