Dheeraj Dikshit, Head of SME Business, HSBC India, said: “Our research indicates confidence levels in the emerging markets are stable. SMEs in India are not changing their business strategy in the next six months, despite the global uncertainty. This bodes well for the Indian economy.”
The semi-annual HSBC Small Business Confidence Monitor gauges the outlook of SMEs on local economic growth, capital investment plans and recruitment.
The latest wave is the largest international survey of its kind covering over 6,300 SMEs across 21 markets in Asia, the Middle East, Europe, North America and Latin America. SMEs with an annual sales turnover of up to US$10m were surveyed.
For the first time since the financial crisis, all Asian markets hold a positive outlook in terms of local economic growth as well as their recruitment and CAPEX plans. Vietnam is the most confident country in Asia with an index of 164, followed by Singapore (136), mainland China (123) and India (121).
As per the survey, confidence increased across the globe from 111 to 118, with emerging markets (122) appearing seven points higher than developed markets (115). Compared to the previous results in 4Q09, the developed markets increased from 106 to 115 (9 points) showing signs of increased positivity within the developed markets.
Most markets across the globe held a positive outlook, with Turkey leading at 138, followed by the Middle East (132), Greater China (121), India (121), South-East Asia (119), North America (119), Latin America (118) and Europe (99). Compared to the previous results in 4Q09, Turkey showed the biggest jump in confidence up 21 points, followed by North America (up 12 points) and the Middle East (up 7 points).