Nearly a quarter of executives expect their nations’ economies to be in better shape by the end of June—significantly more than thought that six weeks ago—according to a survey in the field from April 13 to 17,1 during the stock markets’ recent rally. And 35 percent now expect an overall economic upturn by the end of 2009; slightly more expect an upturn in demand for their company’s products or services by then.
As governments have struggled with the best approach to weathering the economic crisis, many supporting industries one way or another in recent months, executives’ support for government action to bolster industries has waned a bit. Among those who do support action, most think the government should have oversight, at least at the board level, of the companies it assists.
More broadly, in the face of some industry and public calls for protectionist legislation, respondents to this survey—in every region and industry—see such legislation as harmful to national economies, and only 4 percent see it as helpful to their companies. Underscoring findings from another recent survey that trade flows will only be slowed temporarily as a result of the crisis,2 more than two-thirds of executives expect China, with its export-led economy, to have greater influence on the world economy as a result of the crisis; 57 percent expect US influence to weaken.
Notes