Green shoots, but recovery slow: study

Even as the worst is over, the challenge is to create sustainable growth when government support is withdrawn.

The focus over the next few years will be on how to rebalance the economy — such as restructuring the financial sector and finding the right balance between savings and consumption. Global recovery hinges on the strength of the U.S. economy, the survey added.

It also found that respondents recognize that the leadership of the U.S. will continue to be critical in overhauling global economic and financial systems. However, only a small proportion of business leaders saw the U.S. recovering within the next six months. About 41 percent felt it would take between two and three years to get back on its feet.

A second key challenge will be to improve 'connectedness', which means that policymakers must work to cut red tape, discourage protectionism and break down trade barriers. About 42 percent of those in southeast Asia said that the success of the Doha Round trade talks was very important for their business. About 59 percent from southeast Asia also said that their business would be boosted by bilateral agreements with regional economies. Most business leaders agreed that free-trade agreements within APEC are very important.

The third key challenge is sustainability — dealing with climate change and ensuring there is sufficient food for economic growth. Practically all the respondents felt that legislation was vital in creating a sustainable business environment. In particular, 94 percent of those in southeast Asia agreed with the role of legislation. Most respondents across the region back green technologies.

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