McKinsey – Economic Conditions Outlook, Sep 2023

According to the latest McKinsey Global Survey, respondents have a more positive outlook on the global economy for the second quarter in a row. However, their views on current and future economic conditions have become more evenly split between optimism and pessimism. Overall, respondents are generally hopeful about their countries' economies, although sentiments vary by region. In Europe, respondents are primarily concerned about the effects of inflation, leading to a more negative outlook for the next six months. Conversely, respondents in North America are increasingly optimistic. The perceived top economic risks have also shifted, with geopolitical instability and inflation remaining significant concerns but closely followed by China's economic activity, especially in the Asia-Pacific region. Rising interest rates are considered less threatening compared to these risks. When it comes to their own companies, respondents are largely hopeful and expect an increase in profits in the coming months. Many also anticipate significant changes to office space requirements, as strategies are implemented to reduce the need for such space. Overall, the survey results indicate a more favorable outlook on the global economic conditions, both in the past and future.