Corporations still cautious about recovery in 2010, says E&Y

More than 50% of executives from major corporations in West Asia and Africa agree that surviving 2010 would remain a challenge

The corporate world is still nervous about economic recovery, a survey of senior executives at nearly 900 major companies worldwide has revealed, reports PTI.

More than 50% of executives from major corporations in West Asia and Africa took part in the study conducted by global consultancy firm Ernst & Young (E&Y).

The research revealed that over half (53%) of the companies agreed that surviving 2010 would still remain a challenge compared to nearly three-quarters who had said that they were focused on securing the survival of their present business last year.

However, the percentage looking to pursue new ventures this year has also risen to 34% from 19% in January 2009.

Companies focused on improving the performance of their current assets were down to 27% from 39%, and the proportion still restructuring their business also dropped to 27% from 37% over the year.

Tariq Sadiq, West Asia markets leader, E&Y West Asia said, "The region has, in varying degrees, bucked the more extreme after-effects of the downturn."

Organisations may be less worried about survival over the next 12 months, but the return to a healthy operating environment is still some way off.

The overwhelming view is that most companies are still focused on securing the present, which means that they are still in the early stages of responding to the current environment.
 

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