Economic Prosperity Optimism?

According to the latest McKinsey quarterly review, there is greater optimism on America’s economic prospects amongst North American business people than executives living in other areas in the country.  However, whereas they are optimistic about America’s economic growth, this is not extended to the global economy.

Overall, executives around the world are more positive than negative about future global conditions, the report said. Still, only 32 percent of North American executives believe that global economic conditions will be better in six months, while 50 percent believe that they will stay the same. In the euro zone, 49 percent of business executives say that the global economy will improve in six months, and 37 percent that it will stay the same.

Looking at statistics on how the country’s economy is faring however, perhaps this optimism is misplaced. When analyzing the country’s GDP and employment levels, it seems that America’s economic growth acceleration has begun a reversal.  The first quarter witnessed 2.4 percent real GDP, indicating a strong economy but in the second quarter this figure plummeted to less than two percent, indicating a decelerating not accelerating economy.

It seems like one of the key reasons global economic instability was so pessimistic is due to geopolitical instability.  As political unrest increases – most notably in North Africa and the Middle East – so does pessimism on the global economy amongst North Americans.  Indeed, even in terms of the domestic economy political unrest was put down as one of the greatest potential risks.  Still, business executives in the States, in general, were positive about their country’s economy as opposed to the economy in other countries with 40 percent anticipating a drop in unemployment rates over the next six months for example.  It is also felt that long-term, government-spending cuts (which result in tax increases in America) are ultimately a good thing.

In general, North American executives are looking to the future with hope at home but problems abroad.

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]