• Home
  • COVID-19
  • Within 6 months: half of global CEOs forecast positive economic conditions

[adning id=”12070″]

[adning id=”12070″]

Within 6 months: half of global CEOs forecast positive economic conditions

Executives are more hopeful about the economy—and their own companies’ performance—than they have been since the COVID-19 crisis began.

Six months after WHO declared COVID-19 to be a global pandemic, the responses to our latest McKinsey Global Survey suggest a positive shift in economic sentiment. More than half of all executives surveyed say economic conditions in their own countries will be better six months from now, while another 30 percent say they will worsen: it’s the smallest share of respondents all year to expect declining conditions. And except for those in developing markets, respondents in every region are more likely to predict that conditions will improve than that conditions will worsen. That is even true of those in North America, where, between June and July 2020, respondents’ outlooks had taken a negative turn.

The share of respondents predicting improvements in the global economy has also grown over the past few months (Exhibit 2). Now 57 percent say so, compared with 52 percent in June and 25 percent in March. Across regions, emerging-economy respondents report more positive views on the global economy than their peers do: 73 percent expect global conditions to improve in the next six months, compared with 49 percent in developed economies—a much greater gap than previous surveys this year.

Likewise, hopes are increasingly high for respondents’ own companies. For the first time in 2020, majorities predict that both demand and profits will increase in the months ahead.

The survey results also suggest shifting views about the COVID-19 pandemic’s impact on GDP, at least close to home. When asked which of the nine pandemic-related scenarios is most likely, respondents continue to pick the same scenario for the global economy as they have since the spring: A1, characterized by partially effective policy and public-health responses and a years-long economic recovery. But for respondents’ own economies, executives now select a scenario that involves virus containment, sector damage, and a lower growth rate over the long term (B1) most often.

For more detail on the survey’s results, please see our longer article, “Economic Conditions Snapshot, September 2020: McKinsey Global Survey results.”

By McKinsey & Company

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Leave a Comment

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
  • This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.