Despite the crisis in Europe, Brazilian and Latin American businessmen remain optimistic about the economies of their countries. That's what the Global Business Overview research revealed, carried out by FGV?s School of Economics in São Paulo (EESP) in partnership with Duke University and CFO Magazine, and with the support of BMFBovespa and the Brazilian Institute of Finance Executives (IBEF).

Such optimism in Brazil and Latin America is consistent with the resumption of economic growth in the region, says Klenio Barbosa, EESP professor and one of the co-directors of the research. According to him, the continued growth in Asia and the projection of U.S. economic expansion for the second consecutive year influence significantly in the increase of the Optimism Index from 60.1 to 63.5 - explained by the growth forecast of nearly 10% of revenues and profits for the next 12 months.

A 3.9% increase in full time employment is also expected. However, the hiring of temporary employees and contractors shall also increase - 1.8% and 3%, respectively. Possibly, the increase of hiring costs is causing companies to be more cautious in the recruitment process, said Professor Gledson Carvalho, who conducts the research with Klenio. The trend is different from the previous two quarters, which had registered a decrease in the forecast for both types of employees.

According to the research, attracting and retaining qualified employees is still a concern and may be some of the reasons for this change. Full-time employment has been increasing for several quarters. Throughout this period the projected use of temporary and outsourced employment has been steadily declining, and the companies have reported difficulties in hiring and retaining skilled workers. Apparently we reached an inflection point, says Gledson.

The study also points out that the scenario of economic optimism has become stronger in Latin America. On a scale of 0 to 100, Brazilian businessmen attribute a 63.5 mark for its optimism towards the Brazilian economy - the number is slightly higher than the 60.1 mark from the previous quarter. As for Latin America, in general, they attribute 69 for their optimism towards their own economies, compared to 66 in the last quarter. Mexico is the most optimistic country, followed by Peru, Chile and Colombia. The Argentines remain the least optimistic and follow the trend of the United States, Europe and Asia.

The survey was completed on March 8 with the participation of 1,143 CFOs in the United States, Asia, Europe, and Latin America.

The Latin American Business Outlook is part of the Global Business Outlook.