Business Executives hopeful of economic revival: McKinsey

Business executives across the globe are more hopeful about the economy and their company’s performance compared to the days when Covid-19 began, mentions a study.

A report released by McKinsey says although executives still say that the economy has worsened in the past six months, their latest response suggest that moods are shifting towards positive direction.

“By geography, respondents in Greater China remain the most positive about their home economies, with an overwhelming 86 percent reporting improved conditions,” reports  the Economic Conditions Snapshot, September 2020: McKinsey Global Survey Reports.

The online survey was done from August 31 to September 4, 2020. It gathered response from 1138 participants representing various regions, industries, company sizes, functional specialties and tenures.

The report says that it is the first time in 2020 that majority of respondents have started expecting their companies’ profit and demand for their offerings will increase in next six months.

However, workforce size and unemployment are the ongoing concerns for the respondents. The respondents say that workforces will shrink rather than grow in 2020.

Cutting off employees is a bigger worry in developed economies than elsewhere, mentions the report. It reports that respondents in developed economies are more likely to decrease their workforce size compared to emerging economies (33 percent compared to 23 percent).

The response of workforce change was asked to all the respondents including those working at nonprofit organizations, government agencies and departments. However, the question on consumer demand and profits were asked only to the private sector respondents, according to the report.

Here is the full report.

 

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