Weak economy sees companies look offshore

The subdued outlook for the Australian economy is forcing companies to look overseas for ways to grow their business.

Professional services giant EY’s Australasia Capital Barometer says the weak economic environment has resulted in many companies abandoning plans to look for acquisitions, or else search for opportunities overseas.

Only 44 per cent of the company executives surveyed were looking for new acquisitions, compared to two thirds of respondents six months ago, and 70 per cent of those were looking overseas, rather than at home.

The findings revealed all of the executives surveyed expect the global economy to remain stable or improve, but fewer than half expect conditions to improve in Australia, with many citing weak commodity prices, political instability and slower growth in key markets.