With a global manufacturing growth slowdown increasingly evident, central banks in the United States, China, and the European Union have stepped in. To combat the economic slowdown, the banks attempt to loosen credit conditions and expectations to lift short-term economic growth. This provides some much-needed room for emerging-market governments and central banks to pursue more fiscal and monetary stimulus over the coming months. While unlikely to reverse the growth slowdown, this should stabilize global demand at lower levels. Yet there remains significant uncertainty, mostly driven from the policy side. Chinese policy stimulus continues to evolve, and the US continues to disrupt the global trade environment.
Above all, multinational executives need to reassess their fundamental assumptions toward upcoming global macroeconomic, political, and business conditions. To help executives, we recently published our Global Leadership Briefing report, examining the following elements of the global business environment:
We expect nearly every region to see a growth slowdown this year, so we encourage heads of international to work with regional and local leadership to prioritize pressure-testing assumptions through scenario-based methodologies. Thus, preparing your teams for changes in the external environment that will have a material impact on revenue and profitability through 2019.
Fill out the form below to download an executive summary of our Global Leadership Briefing.