Asia's CFOs pessimistic about economy: Survey

Asia's CFOs pessimistic about economy: Survey

Agence France-Presse, Singapore

Company chief financial officers (CFOs) in Asia are more pessimistic about the short-term prospects for the global economy than their counterparts in Europe and the United States, a regional survey showed.

The survey by CFO Asia magazine, which is published monthly by the Economist Group, said 94 percent of CFOs in Asia "are pessimistic about the global economy". It did not give percentages for the European and American executives.

"The trend started with the first signs Western consumers might be cutting back on their spending," said Carla Rapoport, CFO Asia managing editor.

"Now, the blow dealt to the already weakening global economy by the September 11 (terrorist) attacks in the U.S. has sent CFOs into a survival mode," she said.

About 22 percent of Asian CFOs also cited increasing competition as a "major concern" and nearly 50 percent of them said they plan to spend more in the coming year to make them more competitive, said the statement received here at the weekend.

More than 50 percent of Asian CFOs said they expect profit to be down by more than 10 percent coming quarter and 85 percent were either concerned or pessimistic about the regional economy next year, it added.

However, more than 85 percent said they were optimistic in the longer term, according to the survey which did not give details of the number of respondents involved.