The September 2018 edition of McKinsey & Company’s Global Economic Conditions Snapshot reveals surprising statistics on the opinions of global business leaders regarding the world market. Findings of note include the identification of top risks that impact world economic growth and a pessimistic outlook on business leaders’ home countries.
Pessimistic Economic Outlook, Waning Hope
According to the survey results, business leaders stated that the economic conditions in their home country have worsened over the past six months. This is the first time since McKinsey’s December 2016 survey that a larger percentage of respondents have said that their economic conditions have worsened, rather than improved.
In March 2018:
- 8% of leaders said that their economic conditions have substantially improved
- 51% said that these conditions were moderately better
- 14% said that they were moderately worse
- 1% said that they were substantially worse
The economic outlook six months ago was much more positive than in September 2018:
- 5% of respondents said that economic conditions have substantially improved
- 31% said that these conditions were moderately better
- 29% said that they were moderately worse
- 6% said that they were substantially worse
Respondents also report low confidence in the expected economic change in both their home countries and the global economy. Only 32% of respondents believe that economic conditions will improve in their home countries, and only 25% believe that the global economy will improve.
In contrast, 34% of respondents believe that economic conditions in their home country will worsen, and 41% believe that global economic conditions will worsen.
Top Risks That Impact World Economic Growth
Business leaders also identified five factors that impact world economic growth negatively.
Changes to trade policies, such as the USMCA designed to replace NAFTA, may be the greatest risk to economic growth. 62% of respondents selected this option when presented with 13 potential risks.
Other risks to world economic growth include:
- Geopolitical instability, selected by 47% of respondents
- Changing level of global trade, selected by 27%
- United Kingdom’s exit from the European Union, selected by 22%
- Rising interest rates, selected by 18%
The global economy is changing every day. New trends, booms, and busts lead to fluctuating confidence in the world market, but with the right insights and training, savvy business owners can use this data to their advantage.
Contact Schabel Solutions today to discover strategies you can use to bolster your business’s prosperity through inclusivity and collaboration.