Global executives turn cautious on economic outlook: McKinsey
Executives' outlook for the economy has turned cautious and respondents are now more likely to express negative views on both global and domestic economic conditions, says a McKinsey report.
New Delhi: Executives' outlook for the economy has turned cautious and respondents are now more likely to express negative views on both global and domestic economic conditions, says a McKinsey report.
According to McKinsey's latest survey on economic conditions, this downward turn in executive optimism is especially pronounced in developed markets, said the online survey that covered 2,772 respondents.
Only one in five executives said conditions in the world economy have improved while nearly half (48 percent) felt that conditions have moved downhill.
Interestingly, their expectations on their companies remain strong.
Eight in 10 executives expect that demand for their companies' products and services will grow or stay the same in coming months, and a majority believe their profits will be on the upswing.
Across regions, respondents report outsized concerns.
Executives in developed Asian countries cited changing consumer needs more often than others while the pace of technological change is a bigger issue in India than elsewhere, and talent scarcity is a greater risk in China, the survey noted.
Going forward, respondents tend to be pessimistic while 29 percent believe that the global environment will improve in the next six months while 32 percent expect it to worsen.
According to the report, when it comes to home economies, developed-market respondents continue to be more positive than their emerging-market peers.
Developed-market executives think that conditions in their home economies will hold steady in coming months while their counterparts in emerging markets predict further decline.
A common worryline is slowing growth in China and how its growth might affect the world economy.