McKinsey survey on the impact on the global economy1. May 2021
McKinsey survey on the impact on the global economy
New York, 5/1/2021
Perhaps the most surprising finding of the McKinsey Global Survey is this: Globally, 73 percent of all respondents believe conditions for the global economy will improve over the next six months.
Only India makes an exception: there, the number of daily COVID-19 cases reached a new world record last week. There, the percentage of those expecting conditions to improve in the next six months fell from 86 percent in March to 64 percent currently.
When asked about all the potential risks to growth that executives foresee, some regional differences are worth noting (Fig. 3). Respondents in developed countries were more likely to cite pandemics (65 percent versus 55 percent), as well as asset bubbles, high sovereign debt and supply chain disruptions. At the same time, concerns about insufficient government support, unemployment, inflation and weak demand rank higher in emerging markets.
On the corporate side, expectations for consumer demand continue to improve, and earnings forecasts remain positive. Expectations for the workforce are also on the rise, with 43 percent of respondents indicating that the number of employees at their company will increase over the next six months. This is the first time a majority of respondents have said this since the pandemic began, in a mostly steady increase since our June 2020 survey .