According to a survey of more than 1,000 business leaders, carried out by The Institute of Directors (IoD), a majority of them believe there is only a moderate risk of recession in 2012. However, as a matter of concern, 50 percent of them believe there is a very high risk of the break-up of the Euro this year.

In a statement, the IoD's "Policy Voice Survey" revealed that 35 percent of business leaders see a high risk of recession, while 53 percent see only a moderate risk. Finally, an optimistic 11 percent believe there is a low or very low risk of recession this year.

Additionally, 43 percent believe any recession will be short and mild and 10 percent said it will be long and deep.

Interestingly, 50 percent of those surveyed expect higher revenues for their company this year, compared to 2011. This is despite a generally weak UK economy. Of the 50 percent mentioned earlier, 40 percent expect increased profits and 32 percent are wary of decreased profits.

"Our survey confirms that the economy continues to improve despite a somewhat aberrant drop in company optimism," said Ruth Lea, Head of the Policy Unit at the IoD.

She added that although there has been very little growth so far this year, the economy seemed optimistic of better pace in the second half of the year.

"The resounding message from the survey is the critical role of confidence at this stage in the economic cycle," the BBC quoted Graeme Leach, a chief economist at the IoD, as saying.

Graeme added that if the Euro crisis stabilized, confidence could return relatively quickly and companies could start looking at business investments and recruitment plans. However, if it got worse, then any degree of confidence gained so far was likely to dissipate and it is unlikely that will return this year.