Finance executives in Asia and Australia are the most optimistic in their outlook for their economies and expect the region to enter a period of strong recovery and growth as early as the fourth quarter of 2009, according to a global survey of CFOs conducted by American Express.
Thirty nine per cent of CFOs in Asia and Australia are expecting economic expansion in their country compared with only 18 per cent of global respondents.
On the other hand, 45 per cent are anticipating a contraction compared with 72 per cent of global respondents.
When asked about the impacts of the US government stimulus and similar initiatives by their own governments, respondents from Asia and Australia were most likely to say that these efforts will help their business either directly or indirectly.
Eighty percent reported that they will benefit from the US stimulus compared with 70 per cent of global respondents, and 96 per cent expect to benefit from their own government's stimulus initiatives compared with just 83 per cent globally.
Despite the weight of the economic downturn, many companies are taking proactive steps to ride out the storm and position themselves for recovery.
The study revealed a clear divide between investments that companies feel are vital to controlling costs or increasing revenues, and those that may be delayed until a recovery begins.
When asked where it would be important to sustain spending, respondents from Asia and Australia identified information technology (70 per cent), employee benefits (70 per cent), research and development (59 per cent) and marketing/ advertising/ public relations (55 per cent).
Other areas of investment, such as merger opportunities and third-party consultants, were rated as areas not as important to sustain.
