90% of business executives expect more protectionist measures

That is if the global economy slides into a double-dip recession.

According to a release, an Ernst & Young globalization report includes a survey of 1,000 business executives worldwide, conducted in late 2011, canvassing their thoughts on globalization; as well as a forecast of global and regional GDP growth over the next four years. The report shows that despite faltering prospects for the world economy, globalization is still increasing among a majority of the world’s 60 leading economies as they avoid descent into protectionism. However, 90% of business executives expect to see an increase in protectionist measures if the global economy slides into a double-dip recession.

While Ernst & Young forecasts that global GDP growth will be just 3.4% in 2012, the index continues to predict that globalization will continue to advance this year and up to 2015. This is most pronounced for medium-sized emerging markets like Vietnam, Malaysia, Mexico and Colombia and smaller European countries like Belgium, Denmark, Slovakia and Austria.

Lou Pagnutti, Area Managing Partner, Asia-Pacific, Ernst & Young says: “While globalization continues apace regardless of weaker growth around the world, it is important to take into consideration that most of this growth comes from Asia: this year, 14 of the world’s 60 largest economies according to their degree of globalization relative to their GDP come from Asia, compared to 12 the year before.”