TODAY’S NEWS. TOMORROW’S INSIGHTS.A daily newsletter from McKinsey & Company
Edited by Alexandra Mondalek Associate Editor, New York
Slowing growth, increased pressure. Ongoing conflict in Europe is exacerbating price pressures and contributing to a global economy that’s cooling off faster than expected. Worldwide economic growth is now expected to be a scaled-back 2.2% in 2023, compared with a previous forecast of 2.8%, according to the OECD. Consumers and businesses have been hammered by the rising costs of energy and food, with Europe being particularly affected by the slowdown. [NYT]
Seven economic winners. Despite global economic headwinds, a handful of countries have emerged with healthy economies, modest inflation, and robust earnings from stock markets, challenging deeply held biases about which kinds of countries perform well in the global economy. These seven economies in Asia, Europe, and the Middle East are all uniquely positioned: some are more insulated from energy supply shocks that are roiling other nations, while others are enjoying revived activity in foreign investment and in tourism. [FT]
Top risks to growth. Respondents worldwide are generally downbeat about the economy, with those in most regions citing inflation as the main risk to growth in their home economies, according to McKinsey senior partner Sven Smit and colleagues. Nine out of ten respondents say their companies have experienced cost increases in the past six months, found the latest McKinsey Global Survey on economic conditions. Geopolitical instability and conflicts remain a top concern, most often cited as the greatest risk to global growth.
Focused on supply chains. Although concerns over the effects of supply chain disruptions on global and domestic growth have eased since the previous survey, those disruptions are still top of mind as a risk to company growth. A majority of respondents in manufacturing—including those in automotive and assembly, aerospace and defense, and advanced electronics—or retail say they have too much or too little inventory. See the biggest perceived risks to global economic growth (along with which pressures are moderating).
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