Government intervention and intrusive regulations resulting in a more challenging business environment is the top concern for global companies, a Fidelity Worldwide Investment survey has found.
The survey of 114 analysts in Europe and Asia also showed sales volumes continued to be a concern.
"Government interference in the free market for goods and services is a perennial concern for companies," Fidelity Worldwide Asia-Pacific Investment head of research Matthew Sutherland said.
"However, it is running higher than usual now due to governments' new religion of balancing budgets, which could cause them to seek revenue opportunities through new tax schemes.
"Also, a world of competitive currency devaluations potentially leads to trade wars, quotas, tariffs and other destabilising influences."
Sutherland said additionally, governments such as China's were increasing their tendency to micro manage business in order to achieve macro goals, particularly in the banking, property and environmental areas.
"Despite this, it is clear that if we can get some strong leadership from politicans and more confidence that the sovereign debt crisis in Europe can be brought under control, the corporate world is in good shape to fuel an economic recovery," he said.
The concerns were causing companies to resist increasing their spending despite the recovery in their balance sheets compared with 2008/09, which was hindering economic recovery, the survey said.
