Global Survey results

For the first time since 2014, executives in emerging markets are more optimistic about their home countries’ prospects than are their peers in developed markets—and Latin America is a particular bright spot, according to McKinsey’s latest survey on economic conditions.1Respondents in the region,2long the most downbeat on economic conditions at home, report increasingly positive views on the state of their countries’ economies and are among the most bullish on future conditions.

At the same time, executives in Latin America report increasing concerns over political issues at home—none too surprising, since Brazil’s Senate voted to impeach President Dilma Rousseff the same week the survey was in the field. Political risks (specifically, leadership transitions and domestic political conflicts) also top the overall list of threats to domestic growth. Despite these risks, respondents predict stability in the global economy in the coming months, with emerging-market respondents again more positive than developed-market executives.

Newfound optimism in emerging markets

When asked about economic conditions in their home economies, executives tend to say conditions have stabilized and will hold steady in the months ahead. The largest share of respondents (44 percent) say domestic conditions are the same now as six months ago, and 38 percent expect conditions at home will stay the same—or improve—over the next few months.

On the whole, emerging-market executives report a more positive outlook than they did in June and relative to their peers in developed markets (Exhibit 1). This is the first survey since December 2014 in which emerging-market respondents have been more optimistic than their peers about their countries’ prospects.