Indian executives most optimistic on inflation, economy

Indian executives most optimistic on inflation, economy
PTI
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First Published: Wed, Nov 07 2007. 04 44 PM IST
Updated: Wed, Nov 07 2007. 04 44 PM IST
New Delhi: Business executives in India are the most optimistic across in the world, when it comes to their take on inflation and the overall economy in the country six months down the lane, a new survey states.
According to the Economic and Hiring Outlook survey by the international consultancy major McKinsey for the latest quarter, 77% of Indian executives said they think the country’s economy would get “better” in six months.
This is the highest for the executives from any other region including China, Europe, North America and other Asia -Pacific nations.
Besides, the optimism level of 77% in India is considerably higher than the global average of 36% and the Asia-Pacific average of 46%. In China, 65% executives said they expect the country’s economy to improve in next six months, while it was just 26% in North America.
On the inflation front, 19% Indian executives said they expect inflation to decline in the next six months, which was the highest for any other region and significantly above the global average of 9% and Asia-Pacific average of 4%. In China, 13% said they expected inflation to moderate.
Besides, just 27% of the executives in India said they expect inflation rate to increase in next six months, which was the lowest in the world.
It was highest in China at 71%, while the global and Asia-Pacific averages stood at 39% and 52%.
The survey found that about 53% of Indians expect inflation to remain unchanged, higher than the global average of 51% and 43% in Asia-Pacific.
“More than half of the respondents expect inflation to remain stable over the next six months. That patter holds even in India, where three months ago only a fifth of the respondents expected inflation to remain stable, but more than half currently do,” McKinsey said.
“The share of respondents who expect inflation to increase has fallen notably across the regions -- roughly in line with, though less than, the drop in the respondents’ economic confidence,” it noted.
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First Published: Wed, Nov 07 2007. 04 44 PM IST