The European economy, still continuing its economic recovery after the 2008 financial crisis, faces many potential risks. Though varied, they fall into two broad categories. Firstly, a band of social and political pressures which are driving media headlines: a potential ‘Brexit’, the migrant crisis and the continued rise of nationalist sentiment. Secondly, we have economic issues that have been present for a good few years: high unemployment, low inflation and persistently low economic growth.
Amid this backdrop, how are businesses faring? Grant Thornton’s International Business Report (IBR), a quarterly survey of over 2,500 businesses in 36 economies worldwide, put a series of questions to Europe’s business leaders to find out.
Our research shows that despite a complex web of pressures, the business community remains resilient, with 52% of European business leaders optimistic about the economy. There's confidence in the economy's ability to weather storms, and support for the European project remains strong. However, businesses cite weak economic fundamentals, such as low inflation, high unemployment, and slow economic growth, as major threats to stability. Additionally, if the summer 2016 UK vote to leave the European Union (EU) and an increase in migration occur, confidence may face its most significant test in recent years.
