Heads of companies around the world expect an economic downturn - ConsultFX

Heads of companies around the world expect an economic downturn


According to a survey by the international consulting company PricewaterhouseCoopers (PwC), about 30% of company heads expect a slowdown in global economic growth over the next 12 months.

Researchers surveyed 1,300 people from all regions of the world. The share of the negative outlook for the global economy grew almost six times over the year (by 5%), which indicates a strong jump in pessimism.

The sentiments of respondents in the United States deteriorated the most, where the share of optimistic forecasts declined compared with last year from 63% to 37%.

The decline in optimism was reflected in plans to expand business outside of their countries. The United States retained its leadership in the list of targeted areas of expansion, while over the year the attractiveness of the American market fell from 46% to 27%. China, which ranks second in the investment attractiveness rating, also showed a decline from 33% to 24%.

CEOs of companies for the development of their business also chose Germany, 13%, India, 8%, Great Britain, 8%.

Only 35% of respondents expressed strong confidence in the growth prospects of their companies in the next 12 months, last year their share was 42%.

The share of Chinese businessmen who are confident in the prospects for business declined from 40% to 35% against the background of a trade conflict with the United States and a weakened industrial sector. Moreover, only 17% of managers chose the American market to expand their business, whereas last year the figure reached 59%.

The confidence of heads of companies in the United States decreased from 52% to 39%, in Germany - from 33% to 20% due to the slowdown in the economy and the problems associated with the release of the UK from the European Union.

88% of respondents who have expressed strong concerns about the prospects for the global economy are most concerned about the problem of the trade confrontation between China and the United States. At the same time, the majority of Chinese businessmen are actively responding: 62% adjust the supply chain and procurement strategy, 58% reorient business development to other countries.

In addition, 85% of company executives expect the emergence of artificial intelligence (AI) technology over the next five years, which will have a major impact on business, with two-thirds believing that it will change the world more than the Internet.

The material has been provided by InstaForex Company - www.instaforex.com