Executives around the globe are increasingly positive about current economic conditions at both the global and national levels, according to McKinsey's most recent survey on economic conditions.
However, the future of the eurozone economy remains uncertain, according the global management consulting firm. “60 per cent expect a minimal contraction or recession there within the next six months – but, compared with three months ago, significantly larger shares of executives around the world expect improving conditions in their own countries,” the study says.
It also reveals that concern about sovereign-debt default as a barrier to growth is down, while worries about commodity prices and geopolitical instability are up since December. There are also positive indicators at the company level: low demand is still the most-cited risk to growth in executives’ countries, yet larger shares expect demand for their companies’ products and services to increase.
“Profit expectations continue their upward trend, while workforce changes and investment decisions are consistent with results from three months ago, perhaps indicating broadly that companies aren’t yet ready to move on these newly optimistic expectations.”