McKinsey's latest Global Survey on Economic Conditions paints an encouraging picture on the prospects for business. Despite the continuing threat from terrorism and geopolitical uncertainties, Execs remain more buoyant than downbeat in their outlook for both the global and domestic economies.
The survey finds new found optimism about the long term prospects of the world's economy. Execs in India and Europe remain the most optimistic with those in Latin America among the least positive about conditions in their home economies. Overall nearly half of respondents (45%) across the survey expect improvements in local economies.
What the survey and accompanying report seem not to explore is the fragility of the capital markets and the impact of the current long running bear market coming to an end. Nor does it mention the hiatus around the Euro Zone caused by both Britain's Brexit negotiations and the possible implications of President Trump's free market policies.
As a snapshot on the global economic conditions, it's an article worth reading. It informs our thinking and provides a backdrop to better understand the dynamics affecting our global clients as they navigate the choppy waters of the world economy.
Respondents are as bullish on the global economy as they were three months ago: nearly half say global economic conditions have improved in the past six months. On the global economy’s prospects, too, respondents are more positive than negative. Nearly equal shares of executives say global conditions have improved (45 percent) and expect conditions will continue improving in the next six months (41 percent).