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Eurozone crisis – IBR survey reveals impacts on businesses around the world

Thursday, December 06, 2012 | Posted by: Grant Thornton

IBR lost billions diagramFour in 10 businesses around the world have seen their revenue hit by eurozone crisis, according to latest figures in Grant Thornton’s International Business Report (IBR). We explore the lost billions by country and region…

New research from Grant Thornton’s International Business Report shows the global negative impact of the eurozone crisis, and puts some estimates on the amount of lost revenues.

We interviewed 3,050 CEOs, MDs and other senior executives from all industry sectors across 44 economies in August/September 2012 on how the eurozone crisis has affected their business. Below are the main findings.

You can also explore this data more fully with our new IBR data tool.

Key highlights

  • More than half of those negatively affected (54%) say their revenues have dropped by more than 3% as a result of the crisis, and one in three (32%) say they have taken at least a 6% hit.
  • In the United States, 11% of businesses say the crisis has caused their revenue to fall by 10% or more.
  • Around one in three business leaders in the BRIC economies (36%), Asia-Pacific (34%), North America (31%) and Latin America (30%) cite a negative impact.
  • 17% of businesses globally now say they are less likely to do business in Europe as a result of the crisis.
  • Based on the IBR results and the proportion of global GDP accounted for by corporate revenues, businesses are estimated to have lost close to US$2 trillion because of the crisis

The extent of the impact can be seen in the charts below. Click to view them at a larger size.

IBR lost billions diagram

Our first chart shows an estimate of lost revenues by different countries and regions. We asked businesses negatively affected by the eurozone crisis: “By how much has your revenue fallen as a result of the eurozone financial crisis?” The total impact was then calculated at the global level using the ratio of US and UK corporate revenues to GDP of roughly 2:1.

IBR eurozone impact diagram

Our second set of survey results shows the percentages of businesses affected, and how many experienced revenues drops of at least 6%.

Paul Raleigh, Global Leader of Strategic Development & Growth at Grant Thornton International, said:

“It’s tricky to pin an exact figure on the total revenue lost as a result of the eurozone crisis. But our calculations, based on the IBR results and the proportion of global GDP accounted for by corporate revenues, suggest that businesses have lost close to US$2 trillion as a result of the crisis.”

For further survey details on the eurozone impacts, visit Grant Thornton’s International Business Report eurozone news release

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* Impact of the Arab Spring on business globally
* For an interactive look at the International Business Report data