New York: To p executives at large companies anticipate a turbulent economic future and are now even less optimistic about the recovery than they were at the height of the crisis last year, says a report by The Boston Consulting Group (BCG).
A survey of 440 top executives in seven major economies predicts rough time ahead for the foreseeable future. The respondents are also less optimistic than they were at the same time last year, and the survey found that half of them expect an ‘L-shaped’, or a slow and difficult, recovery.
In March 2009, only 17% had responded with as much pessimism. It also runs counter to the prevailing view, suggested by stock market movements and investor behaviour, that “the crisis is behind us”.
The corporate mood was even gloomier in a handful of countries, with Japan leading the way with 72% executives expecting an L-shaped recovery. Spain reported 64%, Italy 57% and France, 52% on the pessimism metric.
“The somewhat fatalistic views of these global executives corroborate our perspective that one should not be overly influenced by short-term economic indicators,” BCG senior partner David Rhodes said. “For the West, at least, once the stimulus effect wears off, we should expect an anaemic recovery—the sort of slow-growth environment that will change the rules of the game for companies as they seek to grow amid increased competitive intensity.”
Most developed economies, particularly the US, face a prolonged period of slower growth, the report added.