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The prospects of economic growth look brighter and countries in developing Asia, led by China, India and Indonesia, are expected to grow by 6.5 per cent in 2014, a Grant Thornton report says.
According to the audit and advisory firm, prospects for this year look brighter with robust growth forecast in large developed economies, the economies of developing Asia and sub-Saharan Africa and the Middle East.
Growth in developing economies as a whole slowed in 2013, but they are still expected to expand faster than developed economy peers in 2014.
"The economies of developing Asia, led by China, India and Indonesia, are expected to grow by 6.5 per cent in 2014," said the Grant Thornton International Business Report (IBR).
Moreover, rising business confidence in the economic outlook has fuelled a resurgence in growth prospects with businesses globally more willing to take on risks and expand their operations.
Revenue growth expectations for the year ahead climbed from net 45 per cent last year to 52 per cent as we head into 2014. Similarly, 40 per cent of business leaders expect profits to climb in 2014, compared with 35 per cent in 2013.
In terms of business confidence as well the emerging market economies are more confident than their developed market peers.
As per the report, BRIC businesses are more confident about rising profits (47 per cent), while G7 business leaders’ expectations have risen to just 36 per cent.
The report further noted that economic uncertainty was cited by 42 per cent of respondents as the principal constraint on their expansion plans in 2014, followed by bureaucracy -- the second most pressing constraint globally.
Around 32 per cent of business leaders said demand constraints are likely to hinder growth prospects in 2014 while lack of skilled workers is also a cause of concern.
Lack of skilled talent is a much greater concern in BRIC economies (39 per cent), compared with the G7 economies (26 per cent).
IBR is a leading mid-market business survey in the world, interviewing approximately 3,300 senior executives every quarter in listed and privately-held businesses all over the world.