The Hindu : Business : Economy will get better, say corporate executives

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Thursday, Nov 08, 2007
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Economy will get better, say corporate executives

Special Correspondent

Indian executives most optimistic compared
to their counterparts in other regions
Half of global respondents expect
inflation to remain stable

NEW DELHI: Indian corporate executives emerge as the most optimistic the world over when it comes to their projections on inflation or the country’s overall economic environment.

According to the ‘Economic and hiring outlook’ survey for the latest quarter by McKinsey, the global consultancy major, 77 per cent of the respondent Indian executives are of the view that the Indian economy will get “better” in six months.

In effect, the Indian executives turn out to be the most optimistic as compared to their counterparts from any other region, including China, Europe, North America and other countries in the Asia-Pacific region. In fact, their level of optimism is considerably higher than the world average of 36 per cent and the Asia-Pacific average of 46 per cent. In China, 65 per cent of the executives surveyed felt the same way about the Chinese economy. In North America, however, it was a mere 26 per cent who thought of an economic upturn. As for their forecast on inflation, a good 19 per cent of the Indian executives expected the inflation rate to slide in the next six months, which again was the highest and markedly above the global average of nine per cent and the Asia-Pacific average of four per cent. In China, only 13 per cent of the respondent executives expected the rate of inflation to moderate.

Even on the flip side, only 27 per cent of the Indian executives expected a higher rate of inflation in the next six months, which again was the lowest globally.

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