Building Confidence & Stability in Europe
16 June 2017
Executives are increasingly optimistic about the region’s business outlook, but new survey results suggest more work is needed to instill confidence and stability.
“European business: Overcoming uncertainty, strengthening recovery”, a new report produced by the McKinsey Global Institute, outlines results from a survey of 2,000 C-suite executives across the continent.
It highlights leaders’ newfound optimism about the outlook both for European economic growth and for their own companies’ prospects. They expect revenue growth of 2.1 percent on average in the coming year, with about one in five companies—especially larger, more internationally focused ones—predicting revenue growth above 5 percent.
The survey nonetheless indicates a continuing reluctance among European firms to invest, citing a range of risks and uncertainties, including concern about future crises, nervousness about rising populism and anti-globalization sentiment, and lingering fears about the future shape and direction of the European Union (EU) itself.